Professional Documents
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Overview
Contents
SNP Introduction
SNP Functionality
SNP Strategies
Contents
SNP Introduction
SNP Functionality
SNP Strategies
Supply Network Planning in
APO
Supply Network Planning
Supply Network Planning (SNP) integrates purchasing, manufacturing, distribution,
Supply Network Planning SNP uses advanced optimization techniques, based on constraints and penalties, to
Starting from a sales plan, SNP determines a permissible short-to-medium term plan
to cover both the quantities that must be transported between two locations and the
Deployment function in SNP determines how and when inventory should be deployed
Deployment
to distribution centers, customers, and VMI accounts. It produces optimized
Yearly/
Demand Planning Forecast
Monthly
Weekly/ Production/
Daily Detailed Scheduling
Conf.
STO Req
Daily Deployment
SNP run output are planned orders and purchase requisitions (recommended transport orders and
planned POs)
Production orders are transfer to PP/DS whereas recommended transport orders are used in the
deployment run.
Supply Network Distribution
Customer Demands
Transport Order
Distribution
Centers
Planned Order
Plants
Starting from a sales plan, SNP 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.
Contents
SNP Introduction
SNP Functionality
SNP Strategies
SNP Cycle
Set up master data, supply
chain model and SNP configuration
Release
demand
plan to SNP
Build loads for unassigned Perform SNP
transport orders Heuristics, Optimization
or CTM run
Run TLB
Review plan/resolve
Run problems
Deployment
SNP Functionality
SNP Strategies
SNP Heuristics
The execution of the heuristic generates a boom in needs across the entire supply chain, based on the demand forecast
or firm sales orders. It comprises the heuristic itself, capacity leveling and deployment.
Heuristic Factors
One time period (bucket)
Scrap
Safety Stocks
Calendars
Components availability
Heuristic considers demand at product/location level, checks inventory, stock in transit and firm production.
All requirements of a given location will be grouped as a single requirement for the time bucket (days, weeks, months)
SNP Heuristics
Capacity Check
The SNP heuristic assumes infinite capacity for resources considered during planning, for which reason the initial
plan provided may not be feasible.
The user can check the impact which the planned orders have on resources via the Capacity Check view,
reviewing the points at which the plan is not feasible.
Capacity Leveling
Using this tool, user can modify the proposed plan by adjusting the use of the resources. This adjustment should
be performed location by location, taking into account the impact that modifications may have on other resources.
Each method can be performed using the product priority or order size rules
SNP Capability To Match
Capable to Match generates a finite capacity planning of short/medium term distribution, production and supply needs
based on prioritized demand, categorized offering and planning strategy.
The basic feature of CTM, as against other tools, is that CTM plans on the basis of individual orders, attempting to meet
them one by one in accordance with their priority, instead of doing so in time buckets
Features
One time period (bucket) Demand from the APO DP module can be prioritized in accordance with one or more of the
following criteria:
Center
Product
Order type
Delivery date
The categorization of the offer can be done in accordance with the criteria - Stock Categories
(excess stock, stock on-hand, order requests, etc.), Production, Safety Stock, Stock in days
SNP Optimizer
The objective of the optimizer is to find the optimal solution to an equation (target function) in which all the penalty factors
defined simultaneously are considered. The objective may be to minimize costs or maximize profits.
Features
One time period (bucket)
The optimizer uses linear programming methods for planning, such that it simultaneously
The planning of the entire chain is solved as a single problem, without the need to perform a
sequential process
The Optimizer proposes the optimal solution in accordance with costs incurred and the
restrictions defined in the system. These costs are used to define the priorities for the
solution.
The result will be an optimal solution (minimal cost or maximum profit) taking into account
transport, production, storage and handling restrictions. The result may be late delivery or
MATRIX
FUNCTIONAL COVERAGE
DIFFICULTY OF PARAMETERIZATION/CONFIGURATION
MAINTENANCE
INTERPRETATION OF RESULTS
PERFORMANCE