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Why we go for DP & SNP

Former Member
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I m new to this field my question is why we go for DP and SNP when there is MRP in R/3. Can any one explain me & solve this problem.

Thanks in advance

Accepted Solutions (1)

Accepted Solutions (1)

former_member563406
Active Participant
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Hi Rajendran,

Mrp is all about an erp used for single company/departmental planning.

Demand planning is more advanced and considers more factors for forecasting the requirements in a network,

it might involves planning within multiple organizations

Hope this helps,

Regards,

Mohan

Answers (3)

Answers (3)

Former Member
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Hi,

One important aspect of APO is that it can perform constraint based planning. This means that the capactiy can be considered initially before actually triggering the MRP. A BOM implosion can be carried out to realize the quantities that can be produced instead of rescheduling (in case the requirements are not in the limits) as is the case in R/3 MRP.

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Hi Kalpanashri,

I am not sure what is the problem. You are not comparing apples to apples. MRP is one component in overall production planning application. What DP and SNP does is much much broad.

For example the forecast is a key input to MRP - where do you get it from. DP - Demand Planning module of APO provides a whole suite of functionalities to capture, manage, generate that forecast.

Again as Harish has pointed out MRP is for a single item/location. Consider this - the demand is at the Retail level which is passed to the Distributor. The Distributor likewise gets demand forecast from multiple retailers under his area and has stock plus some in-transit items. The distributor needs to consider all these and send his demand signal to the Distribution Center. At the DC its the same story before it can pass the net requirement to the Manufacturing Plant. With SNP this whole Supply Chain Network can be modelled and planning (equivalent to MRP at each location) can be carried out in one go.

Hope this answers your question.

Thanks,

Somnath

Former Member
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Hai Somanth,

Can I say this: "MRP is planning only at plant or an MRP area levele but in APO you can plan at any level including product, location, sales organization etc."?

Thanks.

Former Member
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MRP when done recursively can include more than one plant in the setup. It might be a bit complicated to set it up for multilevel but it can be done.

Am not sure if that is something that is the core difference between APO planinng and MRP

The MRP calculation is quite simple compared to the planning that can be done in APO. A multi-location planning is quite easily achieved in APO and there are various heuristics and optimization methods available as a standard.

Saying this, it is also common practice, in the same setup, to do Planning in APO for critical and complex items while doing MRP planning for the others

Former Member
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Hi

it might not do justice to summarize the differences but i will try. Its a good idea to check the overview at www.sap.com/scm and the Wiki for SCM that has been created here (check the sticky thread on top)

DP and SNP are part of Advanced Planning and Optimization(APO) is part of SAP SCM and as the name indicates an advanced level of planning and falls under the category of an Advanced Planning System

R3 is more of execution and though MRP exists in R3 you can find the tools in APO are much more advanced level and can do a multitude more of tasks than in MRP and since R3 and APO can be integrated it makes sense to planning in APO and execution in R3.

in addition to the results of what you would have got fromMRP you can get much much more from APO

In addition to having various algorithms, heuristics and optimization tools it also is interactive and user friendly.

The architecture which is different from R3 also helps in the planning processes being executed more efficiently