APO questions

[Former Member]

Hai,

I have few questions.I would appreciate if you can answer these:

True or False:

1. Confirmed PP/DS planned orders and Forecast for product to be purchased are used as part of SNP planning. how? as which key figure?

2. Forecast data for finished product is used as input for SNP Heuristics. How? as which key figure?

3. What are the parameters that need to be specified for using a model based safety stock method?

4. When planning using SNP Optimizer, does reducing the cost of delivery to a plant increase the preference for production of material in that plant?

Thank you.

Message was edited by:

Visu Venkat

[somnath_manna]

Hi Visu,

These questions cannot be answered True False

1. In standard SNP Planning book (assuming Category Groups assigned to Keyfigures are not changed)

Confirmed PPDS Planned Orders = Production Confirmed

Forecast for product to be purchased = Forecast

2. Total Demand keyfigure sum of Forecast, Sales Orders, Dependent Demand etc. is the basis of demand element for SNP Heuristic

3. What do you mean by model based safety stock method?

4. Can not answer.

Thanks,

Somnath

[Former Member]

Hi Harish and Somnath,

Thanks for the replies. I think I understand questions 1 &2 now. I means model based safety stock method as AT, AS, BT and BS using alpha and beta service levels. For the last question, I think it doesnot direclty influence at indirectly influence the chance of production as low cost of delivery makes theplant to produce or store material...

Thanks.

[Former Member]

Hi

Most of the parameters for the extended safety stock methods (AS, AT, BS and BT) are set in the lot size-->quantity and date determination tab of the product master.

you will have to have a look at individual parameters for each of these safety stock methods here

http://help.sap.com/saphelp_scm50/helpdata/en/be/016e3973ed8c18e10000000a114084/frameset.htm

the two main parts of the setup are

a) the setup in the product master

b) the extended planning profile and variant setup

the setup in the prod master starts with the safety stock method - AT, AS, BT and BS

if you set any of these then you need to fill in the rest of the parameters that go with it (most of what i mention below is based on AT method- pl look the others too in the help)

1.service level %,

2. Demand Fcast Err. (%) - Can also be calculated by the system using historical data from the dp planning area if you denote one KF as demand forecasted and another as the actual demand

3. RLT Fcast Error (%)– Can also be calculated by the system using historical data- same way as above with a KF for RLT expected and another for RLT

4. Target Days’ Supply – During safety stock methods AT and BT the system interprets this value as an order cycle. During safety stock method BS the system uses this value to calculate the purchase order quantity.

5. Replen. Lead Time – Can also be calculated by the system using historical data.this is new in SCM 5.0 Planned delivery time set in the procurement tab is also used

6. Min. SFT/ max SFT - optional and i am not sure if this option was there before SCM5.0.

The extended planning calculation program /sapapo/msdb_sb (?) will map the SNP KFs which is used for Forecast , and the KF to write Safety stock calculation results into, the KF from which to derive the forecast errors for demand and RLT and the period to be considered etc.

you can also attach SFT profile (this again is from SCM 5.0 onwards) - this will indicate to the calculation if it has to use historical data or master data or masterdata/historical data(OR) and it can also let you specify if you think the demand is regular or sporadic(there is a question i had asked on this sometime back). the sft profile also lets you say if you think your forecast is getting any better and if your forecast accuracy is getting better (or worse)

once you set all this up you can run the program and get a detailed log and the planning books in SNP will get updated(if you add the right KFs).

[Former Member]

Hi Visu

to answer Q 1 and 2

SNP is order based. So technically, it doesnt really matter which key figure

Look for KF that contain the category groups that have the order types that you are talking about

Forecast for example is in order type FA that is in Category group DF1 that shows up in KF 9ADFCST

consider everything as receipt and requirement elements (or stock elements)

Confirmed PPDS planned orders (or even firmed SNP planned orders for that matter) are considered as receipt elements and forecast or dependent demand is a requirement

Simply put Required Quantity = -(Stock + receipt - requirement)

read this for some more detail on the subject

http://help.sap.com/saphelp_scm50/helpdata/en/0a/edca3b24e18820e10000000a114084/content.htm

Q3. What do you mean by model based safety stock method??