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LLC and quota arrangement

former_member205751
Participant
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hi

recently i had an APO interview -the interviewer asked me "tell me your understanding about LLC " i said before running SNP01 or SNP OP , i need to run LLC .then he asked me what is the significance of running an LLC before running SNP hiuristic...i couldnt come up with a resonable answer . What could be the significance for LLC.....i know FERT has an LLC of 0  -and and items below FERT are termed as LLC .but why run that LLC first ...is the point of curiosity for me. Can you please explain that ?

   another question is what is about quota arrangement ? where do you fix it in configuration

i said material A from DC1 and material B from DC2 or from any other source of supply have a pre- fixed percentage to be  delivered to make a final product at the plant .

I know my answers are naive ,but what is the right answer for both ? can you help me please.

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Former Member
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Hi Rahul.

LLC is ran before the heurestic run. This gives the SNP Heurestic the sequence how the planning has be carried out for the prod-loc combinations.

  • The system uses the product's position in the bill of material and the location assigned to the product to determine the low-level code. The highest low-level code (a code of 0) is assigned to the finished product in the final location in the supply chain (for example, a customer location). The next lower low-level code (1) is assigned to the finished product in the next-to-last location (for example, a distribution center) and so on. The system assigns the low-level codes of the individual components to the different BOM levels in the same way.The SNP heuristic then plans the location products in the low-level code sequence, first planning the location product with low-level code 0 and so on.

You use a

Quota Arrangement in SAP APO to apportion product quantities among source or destination locations according to your wishes. You can specify weightings for partner locations, external procurement, and in-house production, according to which the quantities are to be apportioned.

There are two different quota arrangement types:

  • Incoming quota arrangement

You use an incoming quota arrangement to specify which proportion of a requirement is to be procured from which source location (e.g. vendor).

  • Outgoing quota arrangement

You use an outgoing quota arrangement to determine which proportion of the receipts is to be delivered onward to which destination location (e.g. one of your distribution centers).

As far i know,  no config is required for quota, we can maintain quota using the trancation code .

Raja kiran R

Former Member
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Rahul

You should be able to read up on the general idea of Low Level Codes in any good Operations Management textbook. If you are a functional consultant in PP or APO Supply Chain Planning it might be useful to consider doing an APICS certification also to get your concepts clarified.

From SAP Help - "The low-level code specifies the bill of material (BOM) level and supply chain location at which a location product is situated. The SNP heuristic needs this information to be able to determine the correct planning sequence for the location products, thus ensuring that demands are fulfilled correctly. It is important to maintain the planning sequence if you are running the SNP heuristic for only a part of your supply chain model".

Say Product X is sold from customer facing location 'D1' which is sourced from manufacturing plant 'M1'. When you run Low Level Code update program, product X at D1 is assigned code of 0 and product X at M1 is assigned code of 1.

The absolute values of low level code have no real meaning, only relative values have significance (In fact SAP use does not match APICS standards). When running a heuristic based planning (MRP in ECC or SNP/ PP Heuristic in APO) algorithm, the system starts planning in sequence of low level code starting with lowest. So Product X at D1 is planned first then product X at M1 is planned next. This ensures that when Product X at M1 is being planned, the dependent demand has already been identified.

Rishi Menon