Deployment Optimzer

[Former Member]

Hello Everybody

How can i create a scenario in the SNP 1 tab of Prod/Locn Master to tell the Deployment Optimizer to 1st consider the Sales orders & then the Forecast.

Regards

Rachel

[rajkj · Accepted solution]

Hi Rachel,

If your business requirement is to treat customer requirements (i.e. sales orders) with higher priority than the forecast, you can simply maintain the deployment optimizier profile and assign priority 1 to customer requirement, 2 to corrected demand forecast, 3 to demand forecast, and 4 to safety stock. This will influence the optimizer solve to treat the demands based on their types and specified priorities. It's more or less a static assignment of priorities.

However, your requirement is to assign (temporal) priorities dynamically, then you need to maintain the penalty cost groups, quantity profiles, etc. You can also have categorize your priorities based on customer using consumption groups. Pl check the following thread for details.

http://scn.sap.com/thread/3165395

Thanks,

Rajesh

[Former Member · Accepted solution]

Are you sure we dont have to maintain the penalties in the SNP1 tab?

[rajkj · Accepted solution]

I'm sure. SNP1 properties allow you to control the planning in a more detailed and sophisticated way.

[Former Member · Accepted solution]

Rajesh- Thanks for the info. I will try to configure this scenario.

However Can you tell me, how can i test this scenario:

In my mind: I have a Product at the DC & the Plant location, with tlanes & other MD in place.

Sales orders created n CIFed across to the APO system, Forecast release has happened - shall i go ahead n run the SNP heuristics & then the Deployment- If yes then how will i know that the system has given the priority to the Sales orders over the Forecast?

[rajkj · Accepted solution]

Hi Rachel,

Pl consider the following scenario.

Assumption:

• Test product's requirement strategy is 20 (i.e. planning with final assembly). Within the forecast horizon(if maintained in SNP2 tab) , the system considers sales demand and outside of the horizon, the system considers the total of sales and forecast. Your forecast horizon may be 10 days.
• The data view consists of daily buckets (for easy interpretation of results).
• A simple supply network DC1 -> Plant and DC2 -> Plant needs to be considered
• No safety stock and lot size procedure is set as Lot-for-lot.
• Transportation duration maintained in t.lane as 1 day from Plant to both the distribution centers.
• In the deployment optimizer profile, you prioritized the demands and given top priority to customer requirements.

Context:

You have a sales order for a product@DC1 for 800 CS with required delivery date as 2/15/2013 and a forecast for the same product@DC2 for 800 CS with required date as 2/15/2013.  If you execute SNP network heuristic it will create distribution demand at the plant for 1600 CS on 2/14/2013 and receipt element (with in-house production, a planned order) will be created on 2/14/2013. 

With this context, consider reducing the planned order (receipt element) quantity to 1000 CS.

Expected Result:

Since there is limited supply, the deployment optimizer needs to allocate 800CS  to sales order @ DC1 first and remaining 200CS@DC2 to the forecast order.

Thanks,

Rajesh

[Former Member · Accepted solution]

Thank you so much Rajesh...lemme try this...

[Former Member · Accepted solution]

Rajesh - I am attaching a file with the Tabs in the Deployment Optimizer, CAN YOU PLEASE TELL ME IF THOSE ARE FIELDS I AM SUPPOSE TO MAITAIN?

[rajkj · Accepted solution]

Rachel,

Since costs are not considered, the 'automatic cost generation' flag should not be selected. Then, the property 'Strict Prioritization' needs to be selected (as you shown in the screenshot). With respect to safety stock, you can choose it to be treated as customer demand or forecast demand. The other parameters are better to leave with defaults for a simple proof of concept. 

Thanks,

Rajesh

[Former Member · Accepted solution]

Can you list the settings to be maintained in the Deployment optimizer for achieving the goal of considering the Sales orders 1st n then the Forecast?

[Former Member · Accepted solution]

If we do this in CTM we can see the result with the help of the Fixed pegging in the Product view...but how will we veryfy the result in this case??

[rajkj · Accepted solution]

Hi Rachel,

SNP (heuristics or optimizer) does not create fixed pegging relationships like CTM. However, you can have dynamic pegging relationships that can be seen in the product view (similar to CTM).

The test scenario given in the earlier post might be a good test along with checking pegging structures (high light the generated planned order in elements tab and click the context button to see pegging structures to know how the planned order quantity distributed to sales order and forecast).

Thanks,
Rajesh