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1. SAP Advanced Planning and Optimization (APO) Overview
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2. www.sapapoexpert.com Email training@sapapoexpert.com Phone (314) 720-1012 (USA) ::
7829052104 (India)

3. Also referred to as the logistics network
It’s a set of approaches used to efficiently integrate
Suppliers, Manufacturers, Warehouses, Distribution centers,
So that the product is produced and distributed, In the right quantities, To the right locations
and at the right time
System-wide costs are minimized and Service level requirements are satisfied
What is the Supply Chain
Suppliers Manufacturer Distribution Retailer Consumer
Maintenance/After Sales Service
Product/Services
Information
Cash
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4. Evaluation of SAP SCM Solution
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5. APO Application Architecture
Supply Network Planning (SNP)
Demand Planning (DP)
Production Planning (PPDS)
Deployment
SAP NerWeaver BI
Planning Sequence
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6. APO Demand Planning Overview
• Anticipation of Future Demand (POS to actual delivery time frame)
• Demand visibility and consistency
• Forecast quality (Forecast techniques)
• Avoid Stock outs
• High inventory levels
• Response to changing market
• Collaborative forecasts
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7. Product Launch
Aggregate
End of Life
Life Cycle Planning
Promotion Planning
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10 11
2009 2010 2011
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
150 200 150 50 20 0 0 0 0 0 0 100 150 150 150 100 20 0 20
350 220 0 0 400 320 20
Seasonal Planning
Collaborative Planning
Vendor
Sales Production
Distributors
Duet Planning
APO Demand Planning Overview
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7829052104 (India)

8. SNP ensures the optimal Use of Manufacturing, Distribution, and Transportation
Resources to meet Forecasts and actual Demand while considering all Constraints in
the Supply Chain
SNP plans Production, Procurement and Transportation throughout the entire Supply
Network using Optimizing and Heuristic Approaches
SNP Overview
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Supplying Location (Goods issue processing time = 1 day)
Transport (Tranfer time = 4 days)
Distribution Center (Goods receipt processing time = 1 day)
Due date
Delivery date
Distribution
Center
Distribution
Center
Plants Plants Plants
Transportation Lanes Transportation Lanes
Demand (SALES Orders / Forecast)
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9. Categories Model 1 Model 2
Unfulfilled Demand 100000 100000
Production Cost 5000 1000
Safety Stock 7000 8000
Shelf Life 1000 7000
Storage Cost 9000 9000
Transportation Cost 1000 90000
SNP Algorithms: SNP Heuristics, CTM, SNP Optimizer
SNP Heuristics SNP Optimizer Capable To Match
Quota Arrangements Cost Based Planning Model Matches supply to
available demand via
production and
transportation capacity
check
Production capacity check Selection of best production site
Capacity leveling Optimization of
production, transportation, and inv.
costs
Ex FMCG, Electronics Ex Trading Orgs
Ex Textiles, Electronics
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7829052104 (India)

10. SNP Overview: Deployment, TLB, VMI
Date ATD - Quantity Requirements
01.05.2012 1000 100 (DC1)
01.06.2012 900 500 (DC2)
01.07.2012 400 800 (DC 1+ DC2)
Requirement Summation
DC1 200
DC2 600
Deployment Result
01.05.2012 Plant to DC 1 100
01.06.2012 Plant to DC 2 500
01.07.2012 Plant to DC 1 100
01.07.2012 Plant to DC 2 300
Deployment Transport Load Builder Vendor Managed Inventory
Optimized plan for
stock transfers
Group transport loads for certain
means of transport
Replenish Vendor Stock
Push/Pull Rule Upper Limit Lower Limit
definition
Replenish Manufacturer Stock
Fair Share Rules Means of Transportation
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7829052104 (India)

11. GATP is a part of sap APO tool that supports business to promise to delivery of
customer demands based on predefined checks on existing stocks.
Global Available To Promise comprise of:
• Basic Methods
• Product Check
• Product Allocation
• Check Against Forecast
• Combination of all these
• Advanced Methods
• CTP
• MLATP
• Product Check Rules
• BOP – Back Order Processing
Product A - Stock 200
Product A - Stock 300 Product A - Stock 100 Product A - Stock 200 Product A - Stock 200
Product A = Product B
Product B - Stock 200
Lead Time 5 days
GATP – Global Available To Promise
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7829052104 (India)

12. PPDS– Production Planning and Detail Scheduling
• Time continuous planning
• Suitable for plant level planning
• DS board for graphical order planning
• Integrated with GATP
• Optimal planning such as:
• Sequence Optimization
• Block Planning
• Shelf Life Planning
• Campaign planning
• Heuristic based planning
• Supports variant configuration and CDP
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7829052104 (India)

13. • Reduction in costs due to simulation, ‘what-if’ capabilities
• Integrating companies in the supply chain
• Simultaneous planning of the problem to reach a synchronized
sales, procurement, distribution and transport planning across the supply chain
• Robust Supply Chain modeling capabilities.
• Decision making capabilities for the optimal location of facilities for the supply chain network
• All modules (DP/SNP/GATP/PPDS) are tightly integrated so that the supply chain entities
can change their plans according to the needs of the market and this change can be
seamlessly integrated across all the module
• Tightly Integrated with ECC using Core Interface – enabling easy sync between planning
and execution
Benefits of Advanced Planner and Optimizer
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7829052104 (India)

14. Thank You