Questions about APO

[Former Member]

Does SAP APO:

a) Analyze capacity feasibility?

•b) Compute the cost impact of adding new SKUs to a current mix of SKUs?

c) Improve decision-making of when and when-not to make Capital expenditure?

d) Help to accurately prioritize continuous improvement projects that reduce downtime and other non-value added wastes?

Thanks,

Shiv

Edited by: Wilian Segatto on Jan 19, 2010 2:07 PM

[Former Member · Accepted solution]

seem like you are comparing i2 profit optimization with APO. I think there is not straight one step answer. You might able to implement these concepts via twisting the functionality. APO has module called Optimizater. As long as you can represent the requirements in APO optimizer, it will yeild the results

-Shibu

Thanks for rewarding points if this helpful

[Former Member · Accepted solution]

Nop, I am not trying to compare but this is a real time requirement from a client & I need to answer if SAP APO can serve these functionalities...

Further clarification will be helpfull

Thanks,

Shiv

[srinivas_krishnamoorthy · Accepted solution]

The requirements seem to more of strategic nature and APO is more of a tactical planning tool.

There are functionalities in APO that can be moulded and can answer part of the questions rather indirectly.

Supply demand propogation can let you know the capacity feasibility of your supply chain. You can use Capable to match engine to do capacity constrained planning. Costs though can be modeled only using optimizer. If you continuously run in to capacity issues (looking at utilization), you can recommend capital investments on capacity. For this one may have to monitor overloads on capacity or supply shortages as applicable over a period of time.