APO Overview v1

IBM Global Business Services
Advanced Planner and Optimizer
Overview
2010 IBM Corporation

Agenda
1. SAP SCM Overview
2. APO an Advanced Planning System
3. BW in APO
4. Integration with ECC - CIF
5. APO Generals
6. liveCache Basics
7. Summary
Copyright [Client name] 2006, All Rights Reserved

2 2010 IBM Corporation
Course Objectives
Upon completion of this course, you will be able to understand:
How Global Supply Chain is enhanced through SAP ERP and SCM APO.
APO is an SAP Advanced Planning System and integrated with SAP ERP
for execution through the Core Interface Function (CIF).
Planning as a critical front end process to integrate and optimize Global
Supply Chain ensuring right products are available at right locations at due
time to meet Customer Requirements.
Key elements / modules of APO
Demand Planning (DP)
Supply Network Planning (SNP)
Production Planning/Detail Scheduling (PP/DS)
Global Available To Promise (GATP)

Consequences of not building an efficient Supply Chain

Network
Reduced service level to customers
Increased inventory levels
Inefficient allocation of resources
Increased transportation costs
Decrease in Market Share and Position
Decrease in Profit

SAP SCM Application Overview

SAP SCM Application consists of a set of components related to
Planning, Collaboration, Coordination and Execution across Adaptive
Supply Chain Networks.
Primary application component is Advanced Planning and Optimization
a.k.a APO
Other application components are Supply Network Collaboration (SNC),
Extended Warehouse Management (EWM), Forecast & Replenishment
(F&R), Service Parts Planning (SPP)
Very tight and standard integration with OLTP system required for
execution Core Interface Function (CIF) provides that between APO
and SAP R/3 or ECC

Fitment in Overall SAP Solution

SAP Business Suite
SAP PLM
Distribution Management
Maintenance & Quality
SAP ERP
Purchase Order
Sales Order &

Management
SAP Financials
SAP
SRM Human Resources CRM
Corporate Services
Operations
Inventory & Production
SAP SCM
SAP NetWeaver

Solution Mapping of SAP SCM
APO DP & SNP
SPP
SRM ECC & SNC
APO - PPDS ECC
EWM ECC
APO - GATP ECC
SAP TM

APO Overview
SAP APO integrates with an ERP system for execution.
Real-time interface called Core Interface Function (CIF) transfers Transaction
Data back and forth between APO and ECC. Master Data is transferred uni-
directionally from ECC to APO only.
APO can be connected to separate BW system or BW within APO can be used
for Reporting purpose
APO Modules
DP : Demand Planning
SNP : Supply Network Planning (Heuristics, Deployment, TLB)
PP/DS : Production Planning Detailed Scheduling
GATP : Global Availability To Promise
Transportation Planning / Vehicle Scheduling (TPVS) is merged with SAP
Transportation Management (TM) solution and is available as stand-alone
application integrating Planning (APO) and Execution (ERP) systems.
APO Application Architecture
R/3 APO SAP-BW
Historical
Demand Planning Data
Sales Key
Orders Production
Perform.
Planning and
Detailed
Indicators
Manufacturing Supply
Global Scheduling
Execution Network
ATP External
Planning
Inventory Data
Deployment (e.g. POS)
Management

Why Do We Need APO ?

What ECC system does well... What APO system does well...
Provides the transaction Provides an integrated and
backbone which ties all facilities synchronized Supply Chain
planning solution
into one system
Plans across enterprises, for
Strong transaction process
example, customer and supplier
integration, especially financial locations
integration Constraint based planning
Provides disciplined data Focuses on only the specific
processes, global control and data needed for planning
supervision to manage a myriad Exception management
of business processes Simulation and what/if analysis
Helps contain operations and Decision support tools which
save money through efficiency interact with and drive R/3
systems

Agenda
1. SAP SCM Overview
3. BW in APO
5. APO Generals
6. LiveCache Basics
7. Summary

Planning Techniques
Forecasting and simulation
Try to predict future developments.
Explain relationship between input and output of systems.
Do not support selection of solution from predefined criteria,
large set of solutions.
Optimization
Objective function : Profit maximized, Cost minimized.

Time Horizon Oriented

Long-Term Planning = Strategic
Medium-term Planning = Tactical
Short-term Planning = Operational

APO Module Mapping with SCOR Methodology
Business Information Warehouse
Monitor
Supply Chain Cockpit
Strategic Network Design

Collaborative
Forecasting &
Demand
Supply Network Planning Planning
Tactical
Production
Transportation
Purchasing Planning Distribution Available
Operational & Planning &
Planning &
-to-
WorkBench Vehicle
Detailed Deployment Promise
Scheduling
Scheduling
BUY MAKE STORE MOVE SELL

(Adapted from SAP AG)
Process Flow in APO

APO starts with Demand Planning where Statistical Forecasting based
on previous Sales and updates from Customer Demand i.e. Sales
Order create Demand Triggers for subsequent Supply Planning.
Supply Network Planning considers the Demand Triggers and takes
into account the delivery schedule of raw materials and production
cycles to determine Net Requirements and plan for Replenishment.
Also it allows Distribution Planning of products based on rules.
Production Planning and Detailed Scheduling is focussed primarily on
In-house Production but can also be used for External Procurement
Order generation.
Global ATP is used for Order Promising with advanced rules for
product availability check and create suitable Production Orders.
APO is designed to improve strategic forecasts and production plans,
quotations, schedules and product shipping by real-time integration.
Mapping of Module and Data Flow in APO
Unconstrained
Demand Planning Forecast
Aggregate Planning
Constrained Planned
Supply Network Stock Purchase
Prod
Mid-term Sourcing/Replen Transfer
Planning Orders
Orders Req
Constrained
Production Planning
Detailed Scheduling Detailed Planning (Plant Lvl)
Global Available To Delivery To Customers

Promise
Allocation Back Orders

Modules of APO
Demand Planning DP
Supply Network Planning SNP
Production Planning Detailed Scheduling PPDS
Global Available to Promise GATP
Transportation Planning Vehicle Scheduling TPVS
NOTE : Transportation Planning / Vehicle Scheduling (TPVS) is merged with SAP

Transportation Management (TM) solution and is available as stand-alone application
integrating Planning (APO) and Execution (ERP) systems

Demand Planning - Overview

Planners Knowledge
Task-specific planning tools
l Promotional planning
l Life cycle management
Information
l Collaboration l Collaborative
l Download/Upload forecasts
l Forecast Accuracy
Anticipation of
Future Demand l Order & shipment
Demand
actuals & history
Planning
Business l Cost
Warehouse
l POS data
l Nielsen / IRI data
Statistical Methods
Multi-model approach l ...
l Linear Regression
l Multiple Linear Regression
l Seasonal Models
l Trend dampening
l Composite forecasting
l Automatic Model Selection

Demand Planning Process

Map the structure of the company (e.g. regions, divisions, brands, products and
customers).
Configure the layout of the planning screens for the different parties.
Define forecast models for time series forecasting, causal analysis, and/or
composite forecasting.
Create a forecast of market demand using a top-down, middle-out, or bottom-up
approach.
Plan promotions and other events.
Fine-tune the demand plan by adding management overrides and modifications.
Simulate different planning scenarios.
Release plan to SNP.
Receive plan from SNP.
Verify the accuracy of the forecast.

Demand Planning Process Flow
Statistical
Define Forecast
Methods and
Methodology
Techniques *
APO Evaluate Achieve Demand

Administration Event Forecast Plan Consensus
Gather Historical Create Base Store and Release

Elements Demand Plan Demand Plan to SP SNP
BW
Setting Up Demand Plan *
Monitor Demand
Plan Process

Supply Network Planning - Overview

SNP
Mid-range Replenishment and Distribution planning across
the supply chain
Combined capacity and material planning
Based on Supply Chain Model based on Master Data
derived from execution system
Bucket rather than continuous planning
Requirement specific solvers

Supply Network Planning Process

Steps in SNP
Creation of Master Data

Creation of Supply Chain Model
Supply Chain Model Setup
Release of the Demand Plan to Supply Network Planning
Choosing Planning Method, Set Profiles
Run SNP Heuristic / Optimiser
Release SNP Constrained Plan to DP
Convert SNP Order to PP/DS Order
Receives PP/DS Inputs
Deployment of Available Receipts to Destination Locations
Transport Load Building to create Replenishment Orders

SNP Process Flow

Set up master data and supply
chain model
Release
demand
Build loads for unassigned plan to SNP Perform SNP
transport orders run
Run TLB
Run Review plan/resolve

Deployment problems
Release constrained Finalize SNP

SNP plan to DP plan (available to PP/DS)

SNP Planning Functionality

Supply Network Planning Strategies
Heuristics
Optimization
Capable to Match
Deployment
Fair Share (Pull) vs Push Rules
Optimization
Transport Load Builder

Leveling in transport loading

Production Planning Detailed Scheduling - Overview

PPDS
PPDS is the planning application for Inhouse Production and
External Procurement functions
Execution functions such as confirmations and goods receipt are
performed in ECC
Order and Operation Scheduling carried out in APO is
simultaneously transferred to ECC
ECC supplies APO with both Master and Transaction data relevant
for planning
Planning results are transferred from APO to ECC. If required,
further planning is completed in ECC e.g. if all of BOM components
are not planned in APO.

PPDS Process Flow

Planning critical products (for example, products with long replenishment
times or products that are produced at bottleneck resources).
Planning in a short-term time horizon with scheduling to the second
while taking order sequences into account.
Generating a feasible production plan which includes the following
improvements:
Reduced lead times and an increase of deliveries that are on time, leading to
greater customer satisfaction
Increased throughput of products based on a better coordination of
resources
Reduce cycle time
Reduced Inventory and reduce WIP

PPDS Order Creation Process flow in APO
ECC Order Creation

(OLTP, SNP, PP/DS)
APO
PP Production Process Model
Evaluation / Selection
MRP PPM Explosion
Availability check against Order

unassigned receipts Stock
Creating Order
Transfer Scheduling Functionality

Orders

Global Available to Promise Overview

Primary purpose of GATP is to promise Inventory to Sales Orders and
Stock Transport Orders.
Tight integration with ECC Sales & Distribution module for Availability
Check during Sales Order creation
Different possible Order Promising strategies include
Product Availability Checking
Product Allocation
Rules based ATP
Backorder Processing
Inhouse Production can be triggered by Capable to Promise (CTP) and
Multi-level ATP (MATP)
Fast response through use of liveCache for ATP check

Product Allocation Process Overview
Product Allocation allows limited inventory to be allocated to

products based on characteristics.
Process Level, Product, Location, Country, Delivery Priority
Characteristics
Managed at product location level (in APO Product Master)
Quantities managed via APO Planning Books
Allocated order quantities can be overridden

Rules-based ATP Overview

In case of constrained supply when Sales Order requested
quantity cannot be filled with Available Unrestricted Stock
Product Substitution : Sufficient supply of alternate product available
Location Substitution : Sufficient stock available at alternate location
Using the rules, system evaluates

If there is enough stock of requested part available to fulfill the order
Based on the rules set-up, evaluates alternate location or parts to
meet customer demand

Backorder Processing Overview
Goal of GATP is to confirm or commit order quantity by

requested delivery date.
Any order quantity NOT confirmed or committed remains
open for backorder processing.
Best practice is automatic (batch) backorder processing.
FIFO Rules
FIFO w/ Delivery Priority Rules
Other Sort Options: Availability Date, Time, Item Grouping
Interactive backorder processing also possible.

Allows Increasing/Decreasing of Confirmed Quantities
Allows Over-riding of Allocated Quantitie

Alert Monitor
Exceptions in planning are
automatically sent to Alert
Monitor
Exceptions can be monitored
in stand-alone Alert Monitor
using Application-specific
Alert Profiles
Or in Interactive Planning
Views like Interactive
Planning Desktop (DP &
SNP), Product View (PPDS)
Alerts generated by macro
batch jobs (DB Alerts) or by Alert notification
standard program (Dynamic
Alerts)
APO Planning Sequence with ECC Integration

Agenda
1. SAP SCM Overview
3. BW in APO
4. Integration with ECC CIF
5. APO Generals
6. LiveCache Basics
7. Summary

SAP BW SAP APO

Sales Analysis Demand Planning (DP)
Historical
Historical data
Data Mart
Interface
Planning results
Staging
Staging
SAP R/3 SAP ECC File File

SAP ECC File
Sales Analysis
Consolidation BW Admin. Workbench
Enrichment delivered with APO
Multiple sources
BW in APO
Characteristics and Keyfigures used in DP and SNP are actually BW
InfoObjects
Planning Object Structures created for DP create Generated Infocubes
on activation in background
Infocubes supply TimeSeries keyfigure data to DP and SNP Planning
Areas
DP and SNP Planning Data can be extracted and loaded into
InfoProviders i.e. Infocubes and ODS/DSO
Prerequisites for a successful integration of APO / BW is existing RFC
connection and Export DataSource for the Planning Area

Extractor/DataSource
Planning Book I Planning Book II
Planning Areas
DATA Time Series Orders

MART
liveCache liveCache
Staging Engine Core Interface

Persistent data staging in APO

SAP BW SAP APO
Standard
Cube Planning
with Data
Historical
Data
Historical
Data
PA - Data Source
Multi Remote Cube
Cube with Planning results
Standard Cube
with Planning results
Business Used when stable data basis for reporting is needed

Explorer No intensive reporting and only small quantities of data are
requested
Persistent data staging in BW

SAP BW SAP APO
Standard
Cube Planning
with
Historical
Data
Historical
Data
Standard Cube
PA - Data Source
Multi with Planning
Cube results
RFC
Used when stable data basis for reporting is needed

Business
Reporting should be independent from APO system
Explorer
Data staging using ODS

SAP BW SAP APO
Standard
Cube
with
Historical
Data
Historical
Data
Multi
PA - Data Source
Cube
ODS
Planning results
Business Used when data is highly volatile and used for Delta
Explorer processing to feed Infocube
Agenda
1. SAP SCM Overview
3. BW in APO
5. APO Generals
6. liveCache Basics
7. Summary

Core Interface Real time integration of APO & R/3

Core Interface Connects an APO system to one or more R/3 systems
Determines source and target systems using integration models
Supplies APO with the relevant master and transactional data
Transfer of planning relevant data only
Initial and incremental data transfer
Real-time interface
Returns planning results to the R/3 system
APO-CIF is installed in R/3 as a plug in
Components of CIF:
Integration Models
Active Data Channels
Message Serialization (qRFC)
Event Channel, Middleware adapter

Setting up the APO & R/3 systems for CIF

In APO, setup the Business System group. The BSG is used to separate
master data from different R/3 systems.
Defining Integration models Integration models can be defined through
CFM1 or using report RIMODGEN.
Activating Integration models using CFM2 or report RIMODAC2.
Ensure that RIMODINI is run prior to generating and activating the
integration models.
Obsolete integration models should be deleted using RIMODDEL. It is
recommended to keep only the last 2-3 integration models of each type.
RIMODGEN should be run first, then RIMODAC2. This ensures that the
old integration model is seamlessly replaced by the new one. Thus,
only a incremental transfer of newly added business objects is done.
On the other hand, if the integration model is deactivated and then
activated, it corresponds to an initial data transfer.

Agenda
1. SAP SCM Overview
3. BW in APO
5. APO Generals
6. liveCache Basics
7. Summary

Some common BAPIs
BAPI Details
BAPI_PIRSRVAPS_GETLIST Planned Independent Requirement i.e. Forecast
BAPI_POSRVAPS_GETLIST3 Procurement Order (Purchase Requisition / Stock
Transfer Requisition)
BAPI_MOSRVAPS_GETLIST2 Planned / Production Order I.e. Manufacturing Order
BAPI_SLSRVAPS_GETLIST2 Sales Order / Deliveries
BAPI_STSRVAPS_GETLIST2 Stocks
BAPI_LOCSRVAPS_GETLIST2 Locations
BAPI_PRDSRVAPS_GETLIST2 Products
BAPI_RSSRVAPS_GETLIST Resources
BAPI_TRLSRVAPS_GETLIST Transportation Lane
BAPI_PROCRELATION_GETLIST2 Procurement Relationship
Tip: Product Code and Location Codes from External Product
and External Location field from MATMAP and LOCMAP tables

Some common Classical User Exits
User Exit Details

EXIT_/SAPAPO/SAPLCIF_LOC_001 APO CIF Inbound Location
EXIT_SAPLCLOC_004 R/3 CIF Outbound - Location
EXIT_/SAPAPO/SAPLCIF_PROD_001 APO CIF Inbound Product
EXIT_SAPLCMAT_001 R/3 CIF Outbound Material
EXIT_/SAPAPO/SAPLCIF_RES_001 APO CIF Inbound - Resource
EXIT_SAPLCRES4_001 R/3 CIF Outbound Resource
Tip: Search for APOCF* in SMOD on APO side

Search for CIF* in SMOD on R/3 side

Some common APO tables

Table Name Details
/SAPAPO/APPLOCS Location Types in APO
/SAPAPO/LOC Location Details in APO
/SAPAPO/LOCMAP Mapping Table for Location between APO and R/3
/SAPAPO/PLANNER Planner Codes in APO
/SAPAPO/MATKEY Product Master in APO - equivalent to MARA table in ECC
SAPAPO/MATLOC Location Product Master details in APO (use
/SAPAPO/V_MATLOC) - equivalent to MARC table in ECC
/SAPAPO/MATLOTSZ Lot Size related details in APO
/SAPAPO/TRPROD Source of Supply contains both PDS and Transportation
Lane reference
/SAPAPO/RES_HEAD Resource Header details in APO
/SAPAPO/RES_UNIT Resource related details in APO
/SAPAPO/TR Transportation Lane
/SAPAPO/TRM Means of Transport for Transportation Lane
/SAPAPO/TRPMOD Assignment of Source of Supply to Model
Some common APO Tables contd

Table Name Details
/SAPAPO/CULLHDR Determine Key for Cluster Table
/SAPAPO/CURTOWUL CURTO: Usage of Components
/SAPAPO/CURTOPPE Additional Header Data for PP/DS Production Data Structures
/SAPAPO/CURTOSNP Additional Header Data for SNP Production Data Structures
/SAPAPO/TSAREAKO Planning Area Details
/SAPAPO/TSAREATE Planning Area Technical Details
/SAPAPO/AOTYPES Alert Object Types
/SAPAPO/AMOSETPF Overall Application-specific Alert Profile
/SAPAPO/TSPLB Background Job Header Information
/SAPAPO/TSPLBAKT Background Job Activities
/SAPAPO/TSPLBSEL Selections used in Background Job
/SAPAPO/TSPLBT Background Job Texts
/SAPAPO/CIFDISTR CIF Publication Distribution Definitions
/SAPAPO/CIFREFDEC Equivalent to SM59
Agenda
1. SAP SCM Overview
3. BW in APO
5. APO Generals
6. liveCache Basics
7. Summary

APO Technical Architecture

Data in R/3, APO DB and liveCache

liveCache
liveCache is:
An in-memory database
Hybrid capability of handling object
oriented and relational data
Integrates with the SAP system via
traditional SQL interface
Standard Transaction handling features
such as locks, rollbacks & commits
COM routines, known as liveCache
Applications contains the business logic
The LcApps are called from SQL as
stored procedures

Application Logic in liveCache
COM Routines for Windows are delivered as .dll files eg.

Sapapo.dll, sapatp.dll etc
For Unix, the COM routines are delivered as shared libraries

liveCache Technology

Performance Benefits of liveCache

Avoids/Reduces disk I/O
Data is kept in main memory
All operations run in main memory
Reduces dataflow between application and database
management
Application logic runs where the data is located and reduces
network overload
Reduces runtime of operations on data
Application logic operates using COM routines on object
oriented data, which is much faster than SQL commands on
relational data

Optimizers in APO
Optimizers are computational solvers applied to specific planning
functions with industry specific variations
Available optimizers in APO
Supply Network Planning (SNP)
Detailed Production Scheduling (DS)
Capable-to-Match (CTM)
Sequencing (SEQ)
Vehicle Scheduling and Routing (VSR)
Model Mix Planning (MMP)
Built on C-libraries supplied by ILOG SA
Uses C++ instead of ABAP for better performance and supports
usage of complex data structures
Only available on Windows platforms

Agenda
1. SAP SCM Overview
3. BW in APO
5. APO ABAP Basics
6. liveCache Basics
7. Summary

Summary
You understand how Global Supply Chain is enhanced through SAP ERP
and SCM APO.
Fitment of APO as an Advanced Planning System and its integration with
Execution system like SAP ECC
Overview of the different modules of APO
Fitment of BW within APO and its interaction with various modules
Overview of CIF used for APO-ECC Data Integration
Technical Overview of APO for liveCache


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IBM Global Business Services

Advanced Planner and Optimizer

2010 IBM Corporation

Copyright [Client name] 2006, All Rights Reserved

Copyright [Client name] 2006, All Rights Reserved

Consequences of not building an efficient Supply Chain

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SAP SCM Application Overview

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Fitment in Overall SAP Solution

Sales Order &

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Solution Mapping of SAP SCM

APO DP & SNP

SRM ECC & SNC

APO - PPDS ECC

APO - GATP ECC

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APO Application Architecture

R/3 APO SAP-BW

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Why Do We Need APO ?

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Time Horizon Oriented

Medium-term Planning = Tactical

Short-term Planning = Operational

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APO Module Mapping with SCOR Methodology

Business Information Warehouse

Strategic Network Design

BUY MAKE STORE MOVE SELL

Process Flow in APO

Mapping of Module and Data Flow in APO

Global Available To Delivery To Customers

Allocation Back Orders

Copyright [Client name] 2006, All Rights Reserved

NOTE : Transportation Planning / Vehicle Scheduling (TPVS) is merged with SAP

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Demand Planning - Overview

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Demand Planning Process

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Demand Planning Process Flow

APO Evaluate Achieve Demand

Gather Historical Create Base Store and Release

Setting Up Demand Plan *

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Supply Network Planning - Overview

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Supply Network Planning Process

Creation of Master Data

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SNP Process Flow

Run Review plan/resolve

Release constrained Finalize SNP

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SNP Planning Functionality

Transport Load Builder

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Production Planning Detailed Scheduling - Overview

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PPDS Process Flow