Dear Suneel,
<a href="http://help.sap.com/saphelp_scm50/helpdata/en/8f/9d6937089c2556e10000009b38f889/frameset.htm">Demand Planning</a> - Use APO Demand Planning (DP) to create a forecast of market demand for your company's products. This component allows you to take into consideration the many different causal factors that affect demand. The result of APO Demand Planning is the demand plan.
Demand Planning is a powerful and flexible tool that supports the demand planning process in your company. User-specific planning layouts and interactive planning books enable you to integrate people from different departments, and even different companies, into the forecasting process. Using the DP library of statistical forecasting and advanced macro techniques you can create forecasts based on demand history as well as any number of causal factors, carry out predefined and self-defined tests on forecast models and forecast results, and adopt a consensus-based approach to reconcile the demand plans of different departments. To add marketing intelligence and make management adjustments, you use promotions and forecast overrides. The seamless integration with APO Supply Network Planning supports an efficient S&OP process.
<a href="http://help.sap.com/saphelp_scm50/helpdata/en/1c/4d7a375f0dbc7fe10000009b38f8cf/frameset.htm">Supply Network Planning</a> - APO Supply Network Planning (SNP) integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model. Supply Network Planning uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions; reduced order fulfillment times and inventory levels; and improved customer service.
Starting from a demand plan, Supply Network Planning determines a permissible short- to medium-term plan for fulfilling the estimated sales volumes. This plan covers both the quantities that must be transported between two locations (for example, distribution center to customer or production plant to distribution center), and the quantities to be produced and procured. When making a recommendation, Supply Network Planning compares all logistical activities to the available capacity.
The Deployment function determines how and when inventory should be deployed to distribution centers, customers, and vendor-managed inventory accounts. It produces optimized distribution plans based on constraints (such as transportation capacities) and business rules (such as minimum cost approach, or replenishment strategies).
The Transport Load Builder (TLB) function maximizes transport capacities by optimizing load building.
In addition, the seamless integration with APO Demand Planning supports an efficient S&OP process.
Supply Network Planning is used to calculate quantities to be delivered to a location in order to match customer demand and maintain the desired service level. Supply Network Planning includes both heuristics and mathematical optimization methods to ensure that demand is covered and transportation, production, and warehousing resources are operating within the specified capacities.
The interactive planning desktop makes it possible to visualize and interactively modify planning figures. You can present all key indicators graphically. The system processes any changes directly via liveCache.
Regards,
Naveen.
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