SCM230 - SCM_SAP_SNP

SCM230Supply Network Planning (SNP)

mySAP Supply Chain Management

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Participant HandbookCourse Version: 2006 Q2Course Duration: 5 Day(s)Material Number: 50079236

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2006/Q2 2006 SAP AG. All rights reserved. iii

About This Handbook SCM230

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iv 2006 SAP AG. All rights reserved. 2006/Q2

ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Overview of Supply Network Planning ..... . . . . . . . . . . . . . . . . . 1Supply Chain Modeling.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Supply Chain Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Unit 2: Master Data and Transaction Data in SNP..... . . . . . . . . . . . 47Working with Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49SCM Product Master . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65SCM Resource Master . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Scheduling in Supply Network Planning ... . . . . . . . . . . . . . . . . . . . . . . . . 91The Production Data Structure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105Source Determination in SNP .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Transaction Data in Supply Network Planning .. . . . . . . . . . . . . . . . . .124

Unit 3: SNP Configuration ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Planning Areas .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138Planning Books.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154Macros and Alerts.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166Navigation in the Planning Table.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184

Unit 4: The Supply Network Planning Heuristic .. .. . . . . . . . . . . . . . 199SNP Heuristic Run... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200Capacity Check and Leveling .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .221Planning Supplier Constraints using the SNP Heuristic . . . . . . . .246SNP Heuristic Scheduling ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253Aggregated Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256

Unit 5: SNP Run Using Capable to Match ..... . . . . . . . . . . . . . . . . . . . . 277Capable-to-Match Process .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278Descriptive Characteristics in CTM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .309Alternative Resources in CTM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313Finite Supplier Planning in CTM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323CTM integration with GATP.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .329

Unit 6: Optimization in Supply Network Planning..... . . . . . . . . . . 335Supply Network Planning with the Optimizer... . . . . . . . . . . . . . . . . . .337

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Contents SCM230

Optimizer Costs ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345Profiles Used by the Optimizer ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356Parameters of the Optimization Run .... . . . . . . . . . . . . . . . . . . . . . . . . . .370Comparing SNP Planning Methods .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .387

Unit 7: Interchangeability .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393Product Interchangeability .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .394

Unit 8: Safety Stock Planning..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417Safety Stock Planning in SNP.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .418

Unit 9: Deployment and the Transport Load Builder ..... . . . . . . 445Basics of Deployment .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .446Transport Load Builder . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .478

Unit 10: Summarizing SNP ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495SNP: Unit Summary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .496

Appendix 1: Appendix ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519

vi 2006 SAP AG. All rights reserved. 2006/Q2

Course OverviewThe purpose of this course is to provide you with an overview of Supply NetworkPlanning's (SNP) functionality and processes. You will be able to understand thefundamental concepts of Supply Network Planning and learn how to set-up asupply chain network. You will also learn how to perform SNP runs.

Target AudienceThis course is intended for the following audiences:

Project team members responsible for creating and optimizing central supply,distribution resource, and production plans in the medium to long-termhorizon.

Course PrerequisitesRequired Knowledge

SAPSCM Supply Chain Management or SCM200 Supply Chain Planning Overview

Recommended Knowledge

SCM210 Master Data Integration SCM212 Integrated Supply Chain Modeling SCM220 Demand Planning

Course GoalsThis course will prepare you to:

Understand the concepts of supply chain network Identify and resolve problems in the supply chain Set-up and configure a supply chain network model

Course ObjectivesAfter completing this course, you will be able to:

Create a model that represents your supply chain network and all relevantlocations, resources, and relationships

Develop queries and collect information about the supply chain Detect and resolve problems in the supply chain using the Alert Monitor

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Course Overview SCM230

Set-up SNP master data and configure SNP Perform SNP runs using SNP Heuristics , the SNP Optimizer, and Capable

to Match Execute a Deployment run to determine the distribution of available supply Use the Transport Load Builder to create multi-product loads

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:

viii 2006 SAP AG. All rights reserved. 2006/Q2

Unit 1Overview of Supply Network Planning

Unit OverviewThis unit gives you an overview of the course Supply Network Planning. You willbe able to understand the advantages of using Supply Network Planning (SNP).You will also understand the need for supply chain management. Next, you willdiscuss the various tools available for Supply Chain Planning (SCP) and identifythe planning horizons in SCP and SNP. Then, you will define the SNP processflow and identify the SNP Planning Strategies. Finally, you will discuss the roleof deployment and the Transport Load Builder (TLB) and define the process forplanning and integrating SCM with SAP ERP Central Component (SAP ECC),previously known as SAP R/3.

Unit ObjectivesAfter completing this unit, you will be able to:

Discuss the advantages of Supply Network Planning Explain the tasks of models and versions of the supply chain Describe the needed master data objects Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture

Unit ContentsLesson: Supply Chain Modeling .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Exercise 1: Modeling.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Lesson: Supply Chain Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Exercise 2: SNP Heuristic and ECC Integration ... . . . . . . . . . . . . . . . . . . . . . 39

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Unit 1: Overview of Supply Network Planning SCM230

Lesson: Supply Chain Modeling

Lesson OverviewThis lesson will help you get an overview of Supply Network Planning (SNP).You will learn about the benefits of planning with SNP and the necessary masterdata objects in the supply chain to do so. You will also become familiar with theroles of models and versions.

Lesson ObjectivesAfter completing this lesson, you will be able to:

Discuss the advantages of Supply Network Planning Explain the tasks of models and versions of the supply chain Describe the needed master data objects

Business ExamplePrecision Pump Company manufactures a large variety of high-tech standardpumps. The company wants to plan the material flow such that it does not createbackorders or excess inventory. As the planning manager, you need ensure thatthe production and procurement of finished products can be executed on time,the distribution to distribution centers is optimal, and customers are suppliedaccording to their requirements.

Benefits of Supply Network Planning with SAP SCMThe benefits of Supply Network Planning with SAP SCM are as follows:

Cross-location medium-term rough-cut planning Simultaneous planning of procurement, production, and distribution Planning of critical components and bottleneck resources Simultaneous material planning and finite capacity scheduling of production,

storage, and transportation resources Cross-location optimization of resource utilization Prioritization of demands and receipts Collaborative supply planning over the Internet Detailed distribution planning (deployment): Generation of feasible stock

transfers Grouping of deployment stock transfers for means of transport in the

Transport Load Builder (TLB)

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SCM230 Lesson: Supply Chain Modeling

Information Flow

Figure 1: The Supply Chain: From Supplier to Consumer

Supply chain planning manages the flow of material and information through anetwork of suppliers, manufacturers, distributors, and customers. For effectiveSupply Chain Management (SCM), this flow must be well-coordinated andintegrated within a company and across company boundaries, on a local andglobal scale.

You can use SAP SCM to link several execution systems to one SCM planningserver for cross-system planning of procurement, distribution, and production.This integrated planning enables you to:

Reduce the costs for sourcing products and raw materials Improve customer service Dramatically reduce on-hand stocks Make better use of company resources



Figure 2: Beyond Traditional Planning

Supply Network Planning (SNP) integrates purchasing, manufacturing,distribution, and transportation so that comprehensive tactical planning andsourcing decisions can be simulated and implemented on the basis of one globaland consistent model.

SNP provides an overview of the inventory levels and previously planned receiptsfor finished products and components of all the connected OLTP systems.

Various planning methods can be used to create feasible cross-locationplans for the flow of material along the supply chain, taking into accountconstraints and penalty costs. The result is optimal purchasing, production anddistribution decisions, reduced stock levels, and improved customer service forvendor-managed inventory (VMI) customers.

Possible constraints are material availability and availability of work center,storage, transportation and handling capacities. You determine how productionis carried out in which plant by using the production data structure (PDS) orproduction process models (PPM) .



Master Data Objects

Figure 3: Master Data Objects in the Supply Chain

Even when using an SCM system for supply chain planning, master data is createdin the connected execution systems (for example, SAP ECC), modified, and thentransferred to SAP SCM. The execution systems, therefore, are the dominantsystems for the master data. Only master data that exists only in SAP SCM andthat does not exist in SAP ECC is created in the SAP SCM system.

The master data objects for the supply chain created in SAP ECC are plants,distribution centers (DCs), vendors, and VMI customers. Supply chain planninginvolves materials that are defined as material masters. For plants that produceand plan, you need to create work centers, bills of material (BOMs), and routingsin addition to the materials for planning.

In SAP SCM, you define transportation lanes between the individual supplychain locations, such as plants and suppliers, which, among other things, definethe means of transport and the shipment duration in the supply chain. In ECC,material-specific procurement relationships can be defined using a specialprocurement key and transferred to the SAP SCM transportation lane. Quotaarrangements cannot be transferred to SCM.

The supply relationship between a vendor and a plant is stored in SAP ECC in theform of a purchasing info record, scheduling agreement, or contract. When youtransfer these external procurement relationships to SCM, they are displayed asexternal procurement relationships for the transportation lane. The source list canalso be used as source determination in SAP SCM. It should be decided whetherthe purchaser is working in SAP SCM or still in SAP ECC.



Figure 4: Master Data Objects of the APO Core Interface

Data transfer between the ECC and SCM systems is defined and controlled usingthe Core Interface (CIF). CIF is the central interface that connects SAP SCM tothe existing SAP ECC system environment and is imported to the ECC system bya plug-in. In the Core Interface, you select the objects that should be transferred toSAP SCM via the integration models. Only the planning-relevant parameters fromthe complex dataset of SAP ECC are transferred to SAP SCM.

The Core interface is used for both initial data transfer (initial transfer) and transferof data changes (transfer of data changes).

The SCM master data objects are not identical to those of ECC. During masterdata transfer, the relevant ECC master data is mapped to corresponding SCMplanning master data.



Figure 5: Master Data Integration

The master data transferred from ECC is assigned automatically to the activemodel 000 in SCM. This means that the active model also represents the supplychain in SAP SCM. You must also maintain in SAP SCM the means of transport,transportation lanes, and quota arrangements, as this information cannot betransferred from SAP ECC. If you also want to plan production in SNP, you needto generate SNP production data structures or production process models thatsummarize the information regarding the planned components and resources fromthe ECC bills of materials, work centers, and routings. If, in addition, you want toselect suppliers in SNP, you must have product master records for the suppliers.



Figure 6: Models and Planning Versions

The model represents the master data of the supply chain and consists of individualnodes (locations) and links. The transaction data for the master data of the modelis stored in versions of the model. In SCM, you can create and manage differentversions of a model for simulation purposes. However, for the active model (000)there exists only one active version (00) which exchanges transaction data withthe connected execution systems. Inactive models are only used for strategicplanning to, for example, examine the effects of new locations or modifiedtransportation lanes.

The model is the basis for all SCM planning functions and covers the entire supplychain network. The supply chain model contains all master data such as locations,resources, products, transportation lanes, etc. You can view and maintain themodel using the Supply Chain Engineer.

Master data the was transferred from the OLTP Systems, such as locations,products, resources, production data structures (PDS) or production processmodels (PPM), is automatically assigned to model 000. You must explicitly assignany master data that you create in SCM to the model.

Versions contain the version-specific master data of the model and transactiondata. For simulation purposes, you can change the master data of the model indifferent versions. For example, you can define that a resource is available for 8hours in version 00 but for 16 hours in version 001. Versions are uniquely assignedto one model within the entire system.

Models and versions can be copied. From SCM 4.0, transaction data can becopied from an inactive version to the active version; the integration with the ECCsystems(CIF) must be canceled first. Transaction data in versions of differentmodels cannot be copied.



Additional Tools for Master Data and Transaction Data

Figure 7: SCM Maintenance Tools and Reporting Tools

You use the Supply Chain Engineer (SCE) to create your supply chain model. TheSCE allows you to analyze and modify a model. However, maintaining objectselections (work areas) is time-consuming, so in fact SCE is seldom used.

The Supply Chain Cockpit (SCC) allows planners to make an integrated analysisof transaction data in the supply chain. The SCC allows the evaluation ofplanner-specific exception messages (alerts) and partial scenarios (for example,individual regions or product lines). These evaluations, however, are normallyperformed directly in the planning table, in the Alert Monitor, or using the toolsof the SAP Business Information Warehouse (BW), so SCC is used even lessfrequently.

Together with the planning table, the Alert Monitor is an essential tool for theSNP planner. It gathers together the exception messages (alerts) and processesand prioritizes them according to user. The SNP planner is thus informed aboutproblems with the plan and can intervene accordingly.



Figure 8: Supply Chain Engineer (SCE)

The SCE affords you an integrated display of the master data for which an SNPplanner is responsible. The master data of the supply chain can be queried here.For example, you can request a list of all the products assigned to a specificlocation in your model. At the same time, you can add products to this location ormake changes in the location master.

Figure 9: Work Areas

Since your supply chain normally includes thousands of products, bills ofmaterials, and routings, you need a filter for the SCE so that you can restrict themodel display to just those objects for which an SNP planner is responsible.This filter is called the work area. The work area is used exclusively as a filter



to display objects in the SCC and SCE. After the work area is defined, it formsthe basis for the queries that you submit to the SCM system to gain informationabout all aspects of your supply chain. The transportation lanes in your work areaare derived from the selected locations.

You can select the following in the work area of the supply chain:

Locations (for example, plant, DC, supplier, customer) Products Resources (for example, production, storage, handling, and transportation) Production Process Models (PPMs)



Exercise 1: Modeling

Exercise ObjectivesAfter completing this exercise, you will be able to: Analyze the given model in the Supply Chain Engineer Navigate in the Supply Chain Engineer Create work areas and submit queries

Business ExampleYou are the Planning Manager at Precision Pump Company. In the Supply ChainEngineer, you want to create a work area with those entries for which you areresponsible so that you can analyze the objects of your supply chain.

Task 1:1. Create a work area WA-## for the Supply Chain Engineer for the prepared

model SNP-##, which contains your frequently used objects. Use the data inthe table below and save your selection variant with the name SEL-## forfuture use.

Selection Objects Characteristicvalue from

Characteristicvalue to

Location Location number 1000 2500Resource Resource number W1906*Production process model SNPPlanner

P00

Location Product SupplyNetwork Planner

P00

Task 2:Navigate in the Supply Chain Engineer and use the basic features and functionality.

1. Go to the logical view PUMP in order to better judge the structure of yoursupply chain.

2. Query the transportation lanes permitted for product P-102. In whichlocations is the product maintained and where can it be transferred to?

3. Display the master data for location product P-102 at distribution center2400 in the Supply Chain Engineer.

4. In the Supply Chain Engineer, display the inbound quota arrangement for allproducts at distribution center 2500.



Solution 1: ModelingTask 1:1. Create a work area WA-## for the Supply Chain Engineer for the prepared

model SNP-##, which contains your frequently used objects. Use the data inthe table below and save your selection variant with the name SEL-## forfuture use.

Selection Objects Characteristicvalue from

Characteristicvalue to

Location Location number 1000 2500Resource Resource number W1906*Production process model SNPPlanner

P00

Location Product SupplyNetwork Planner

P00

a) Choose Advanced Planning and Optimization Master DataSupply Chain Engineer Maintain Model.

b) Enter the data in the table below.

Model/Work AreaModel SNP-##Work Area WA-##

c) Select the Display button.

d) A dialog box warning you that this is a new work area will appear.Confirm this dialog box.

e) Click the Work Area icon and choose Add Objectsfrom the drop down menu.

f) The first selection object at the top Location Number is marked with ared arrow. Enter the location numbers in the lines Char. Value Fromand Char. Value To in the right hand part of the dialogue box.

g) Next, under the Resource entry, double-click on the selection objectResource Number. A red arrow appears in front of it. In the right partof the dialog box enter W1906*.

Continued on next page



h) Then, under the Production Process Model heading, double-click SNPPlanner so the red arrow appears there. Enter P00 in the left column.

i) Finally, under the Location Product heading, double-click SNP Plannerand enter P00 again.

j) Click the Save Selection icon to save your selection.Name your selection SEL-## and select Save as.

k) Copy your selection to the Supply Chain Engineer by clicking theAdopt icon.

l) If you want to view a specific geographical area on the map, you canhold down the left mouse button to specify the zoom area.

Task 2:Navigate in the Supply Chain Engineer and use the basic features and functionality.

1. Go to the logical view PUMP in order to better judge the structure of yoursupply chain.

a) Choose Settings Logical View.

b) Select the PUMP logical view from the drop down list and click OK.

c) You can use the same Settings menu to change back to the geographicalview.

2. Query the transportation lanes permitted for product P-102. In whichlocations is the product maintained and where can it be transferred to?

a) Select product P-102 on the Location Products tab page.

Right mouse-click on a location product from the Product P-102 anduse the right mouse-button to choose Queries Transport Net (map)or Location and Transportation Lane List. Execute query.

The permitted transportation lanes are shown in red in the graphicdisplay.

Product P-102 is produced in plants 1000 and 2300 and is sold anddistributed by distribution centers 2400 and 2500. DC 2400 onlyreceives supplies from plant 1000, DC 2500 is supplied from bothplants.




3. Display the master data for location product P-102 at distribution center2400 in the Supply Chain Engineer.

a) Choose the Location Products tab page.

Right-click on location product P-102 in distribution center 2400 inorder to select it and display the master data for this product: Display Location Product. In the next window, choose Execute query.

4. In the Supply Chain Engineer, display the inbound quota arrangement for allproducts at distribution center 2500.

a) Choose the Locations tab page.

b) Right-click on distribution center 2500 and from the contextmenu choose: Quota Arrangements Display Incoming QuotaArrangements.

c) You can also access this information by right-clicking on DC 2500on the map.

d) Double-click on the All products row to display the Quotaarrangement items for all products.



Lesson Summary

You should now be able to: Discuss the advantages of Supply Network Planning Explain the tasks of models and versions of the supply chain Describe the needed master data objects



Lesson: Supply Chain Planning

Lesson OverviewThis lesson will help get an overview of the various tools available for SupplyChain Planning. First, you will learn about the Planning Horizons in SCP andSupply Network Planning. Next, you will learn about the SNP process andidentify SNP planning strategies. You will also understand the role of deploymentand the Transport Load Builder (TLB) in SNP. Finally, you will learn about theprocess of planning and integrating SCM with SAP ECC and about the SCMapplication architecture.


Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture

Business ExampleAs planning manager at Precision Pump Company, you need to finalize a modelfor the supply chain network that will identify the direction that the final productswill take. You need to ensure that you have designed the supply model in such away that you can easily find out the products assigned for a specific location ata given point of time.


SCM230 Lesson: Supply Chain Planning

Network Planning

Figure 10: Supply Chain Planning at a Glance

The process of supply chain planning can be divided into many steps, some ofwhich can be executed by components in SAP ECC and others that can be executedin SAP SCM. You need to integrate these two systems and use both together whenplanning. The APO Core Interface (CIF) integrates SAP ECC and SAP SCM.

Demand planning, where past sales figures can be used to derive a future programof production, can be executed both within flexible planning in SAP ECC (usingstandard Sales and Operations Planning (SOP)) or within Demand Planning (DP)in SAP SCM.

In SCM, planned independent requirements can be created from SAP ECCDemand Management or SCM DP Demand Planning. You can also use DP massprocessing to set the sales quantities from SCM DP as planned independentrequirements in SAP ECC Demand Management.

Sales orders are created in the SAP ECC system. A global Available-to-Promisecheck (global ATP) for a sales order can be made in SCM. Integration with theProduction Planning and Detailed Scheduling (PP/DS) module is also possible.

Supply Network Planning in SAP SCM is used for cross-location planning.

You can execute Material Requirements Planning (MRP) in either SAP ECCor SCM. In SAP ECC, capacity requirements planning must be executed ina second separate step, whereas in the Production Planning and DetailedScheduling (PP/DS) component of SCM, quantities and capacities can be plannedsimultaneously.



Production execution, which is the processing of manufacturing orders (productionor process orders), takes place in SAP ECC.

Figure 11: Planning Horizons in mySAP SCM

With Demand Planning (DP), you can predict customer demands by creatingforecasts based on historical consumption data. Demand planning data isbucketed with no constraints. Forecast data is the released in the form of plannedindependent requirements.

Supply Network Planning is a bucketed, medium-term, cross-location planningprocess for planning production outside the SNP production horizon andprocurement outside the stock transfer horizon.

Production Planning and Detailed Scheduling is used for short-term, order-basedplanning according to sequences and setup times within the PP/DS horizon. Theplanning run does not create new orders within the planning time fence becausethis might disrupt production.

If the production horizon of SNP is smaller than the PP/DS horizon, the planninghorizons of SNP and PP/DS overlap with each other. In this horizon, SNPdetermines the receipts with the most cost-effective sources of supply and lotsizes and PP/DS plans the receipts generated by SNP in more detail. You defineplanning horizons on the SNP2 tab page of the product location master record.Within the extended SNP production horizon it is only possible to create plannedorders manually. The SNP production horizon can be shifted periodically.

Deployment and the Transport Load Builder (TLB) are tools within SNP forshort-term replenishment planning. You use them to adjust stock transfers toshort-term changes in demand or supply.



Figure 12: Supply Network Planning

SAP SCM SNP takes place over the medium- to long-term horizon, that is, outsidethe production horizon. For example, it is based on demands for distributioncenters that you determined in Demand Planning; these demands should now bemet by the distribution centers, production plants, and suppliers in your network.

This type of planning can be executed finitely, which means that productionresources, storage resources, or transportation resources in your network canbe taken into account even at this stage of planning. Planning in SNP takesplace based on time buckets, that is, on the basis of freely defined time bucketprofiles. The smallest unit in SNP is one day. Bucket-oriented planning is notas performance-intensive as Detailed Scheduling in SCM PP/DS, which meansthat it can also plan complex networks.

Supply Network Planning involves two steps: During the first step, whichrepresents the actual planning, SNP stock transfers are created to optimizedistribution and meet the demands in the network. For example, the demands ofa distribution center might best be met by transferring stock from two separateproduction plants. The second step occurs after production in the productionplants is complete. Planning is executed within deployment. In deployment, SNPstock transfers are converted to SAP ECC stock transport orders, depending on thequantities actually produced and current requirements.



Figure 13: Goals of Supply Network Planning

The overall goal of SNP is to provide a feasible supply plan to complement theunconstrained demand plan that was planned by the Sales and Marketing teamsin SCM DP. Global and central procurement, stock transfer, and productioncapabilities are checked and a feasible solution is obtained.

As a result of SNP, you can transfer planned orders, purchase requisitions, andstock transport requisitions to the connected OLTP systems so that the medium- tolong-term plans are available to other areas.

You use make-to-stock production strategies to plan production or procurementusing planned independent requirements that arise from expected future salesforecasts. Depending on which strategy you choose, sales orders can affectdemand, consume planned independent requirements, or have no effect ondemand. In make-to-stock production, sales orders are usually fulfilled by stockon hand. The indication number for strategies is normally different in ECC andSCM, because an SCM strategy can contain more than one ECC strategy. SNPsupports the following SAP ECC strategies: 10 - Make-to-stock production, 40 -Planning with final assembly, and 70 - Subassembly planning.



Transaction Data

Figure 14: Transaction Data Objects in the Supply Chain

Supply chain planning is based on master data, for example work centers. Theresult of this planning is transaction data, which is used to plan for procurement.

The planning process starts with the independent requirements that are stored asplanned independent requirements or sales orders. These requirements specifydemands in a distribution center or sales center. Independent requirements canalso be created directly for a production plant.

You use the network to plan how to fulfill these independent requirements. Theserequirements are met either by stock transfer, in-house production, or externalprocurement.

Stock transfers control the movement of goods between locations; planned ordersand production orders are receipt elements for in-house production. Purchaserequisitions and purchase orders or scheduling agreement releases are used tomodel external procurement. Starting from a demand plan, SNP determines afeasible short- to medium-term plan to meet the estimated sales volumes. This plancovers both the quantities that must be transported between locations, for example,distribution center to customer or production plant to distribution center, and thequantities to be produced and procured, taking available capacity into account.

SNP planning results in the creation of planned orders, purchase requisitions, andstock transfers that you can transfer directly to the connected OLTP systems. AnSCM stock transfer can create a purchase requisition in one OLTP system and asales order in another OLTP system.



Figure 15: Transaction Data Integration

Integration models that you define in SAP ECC are used to specify whichtransaction data is selected for transfer to SCM. All transaction data is mappedto orders in SAP SCM, which are distinguished by their ATP category. SCMtransaction data objects are not identical to those in SAP ECC.

First, the APO Core Interface is used to make the initial data transfer oftransaction data. As a rule, the change transfer between SAP ECC and SAPSCM follows automatically for transaction data objects belonging to an activeintegration model. New transaction data or changes to existing transaction dataare transferred automatically. In Customizing, you can define whether you wanttransaction data from the SAP SCM Supply Network Planning component to betransferred back to (published in) SAP ECC in real time or periodically.

Planned independent requirements can only be transferred from SAP ECC toSCM directly using the core interface. The retransfer of planned independentrequirements (that you require if you only perform Demand Planning in SCM)must be triggered from SAP SCM Demand Planning by a specific transaction.

In SCM (PP/DS Customizing), you can specify that planned orders and purchaserequisitions are only to be transferred from SCM to SAP ECC if the conversionindicator is set.



The Supply Network Planning Process Flow

Figure 16: The Supply Network Planning Process Flow

When the demand plan is released, planned independent requirements are createdfor SNP or PP/DS.

Performing the SNP run using the SNP heuristic, SNP optimization, orCapable-to-Match results in a medium-term production and distribution plan.After the SNP run, you check the exception messages or alerts and solve anyproblems that may occur.

The final SNP plan consists of feasible purchase requisitions, SNP stock transfers,and SNP planned orders. You can convert SNP planned orders into PP/DS plannedorders in the production horizon using the PP/DS planning run. The plannedindependent requirements and SNP stock transfers are covered by PP/DS plannedorders. In addition, detailed constraints and bottlenecks, such as sequences andsetup times, are taken into account, and a feasible production plan is created.

The final SNP or PP/DS plan can be released to DP again to compare theunconstrained demand plan with the feasible procurement plan. If the two plansdo not match, you can use a macro to trigger alerts so that the demand plannercan plan the forecasts again.

After production planning is complete, the deployment run confirms the SNPstock transfers based on current receipts and demands.

The TLB run groups the deployment stock transfers into TLB shipments.



You can manually create stock transport orders for deployment stock transfers thatcould not be taken into account during the TLB run. One reason that transfersmight not be taken into account during the TLB run is because threshold valueswere specified.

Figure 17: Supply Network Planning Options

Supply Network Planning in SAP SCM can be executed as finite or infiniteplanning.

Neither capacities nor material availabilities are checked in infinite productionplanning. Planned orders, stock transfers, and purchase requisitions are created forthe requested date, even if there is no free capacity. Even if components cannot beprocured on time, planned orders are created. Capacity requirements planning isthen done interactively in a second step.

During finite planning, availability of capacities and components required forproduction is checked when receipts are created. The planned order can only becreated when sufficient capacity is available. If there is no available capacity forthe requested time, the planned order is created earlier or later, depending onwhen there is available capacity. This delay is indicated by an alert. CTM and theoptimizer create feasible medium-term supply, production, and distribution plans.

Deployment distributes the stock and available receipts at the plants to thedistribution centers and Vendor-Managed Inventory (VMI) customers. The stocktransfers are adjusted to the current situation.

The Transport Load Builder (TLB) groups together the deployment stock transfersconfirmed by deployment, taking transportation capacities into account.



In Customizing, you set whether or not you want the deployment stock transfersor TLB shipments to be converted to stock transport orders when transferred toSAP ECC.

SNP Planning Strategies

Figure 18: Heuristic Scenario

The heuristic performs the following functions:

Plan supply to meet demand without taking into account constraints such asavailable capacities and materials (infinite planning).

Plan receipts for purchasing, production, and distribution within the supplynetwork on a cross-location, period-oriented basis.

Synchronize activities and plan the flow of material throughout the supplychain.

The above graphic provides an example for the heuristic:

1. There is demand at the distribution center. The net requirements calculationfinds no stock. The product is procured externally. The system determinesthe possible transportation lanes. Demand is distributed according to quotaarrangement and transferred to the plants through stock transfers.

2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,planned orders are created for the finished product, and dependent requirementsare created for the components. The planned order in the plant with the higherquota arrangement is not feasible due to limited capacity. As a result, an alert isgenerated and the supply chain planner has to intervene.



3. Components are then procured through the possible transportation lanesaccording to quota arrangements or priorities. The supplier with the highestpriority cannot deliver enough. An alert is generated and the supply chain plannerhas to intervene.

The heuristic can be used for rapid cross-location distribution and supply planning,if constraints are not usually relevant.

Figure 19: Capable-to-Match (CTM) Scenario

Capable-to-Match (CTM) is a rules-based, cross-location planning method thattakes into account constraints such as available capacity and materials during theplanning run (finite planning).

The feasibility of receipts is checked successively against priorities or quotaarrangements and the first feasible solution is scheduled.

CTM is an order-based planning method that uses pegging to track orders back tothe individual demand. As a result, CTM is not a true form of Supply NetworkPlanning because SNP provides quantity-based and not order-based planning.But CTM is a part of this course because it is a form of cross-location planning.After the optimization or heuristic run, planned production orders or purchaserequisitions can no longer be uniquely assigned back to the original sales order.

The above illustration provides an example of CTM:

1. There is demand at the distribution center. The net requirements calculationfinds no stock. The product is procured externally. The system determines thepossible transportation lanes. CTM checks whether or not the finished product andcomponents can be procured from the plant with the higher quota arrangement.The entire quantity cannot be procured. As a result, procurement is distributedaccording to feasibility and transferred to the plants using stock transfers.



2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,planned orders are created for the finished product, and dependent requirementsare created for the components. The plants have sufficient capacity to deliver theplanned orders. The supply chain planner does not need to intervene.

3. Components are procured through the possible transportation lanes according toquota arrangements or priorities. The suppliers can supply enough. The supplychain planner does not need to intervene.

Figure 20: Optimizer Scenario

The SNP optimizer is a cost-based, cross-location planning method that takes intoaccount constraints such as available capacity and materials during the planningrun (finite planning).

The feasibility of receipts is checked globally and the solution that is the mostfeasible and cost-effective is scheduled. Priorities are set using control costs thatyou maintain in SCM, excluding procurement costs. Quota arrangements areignored by the optimizer although the quota arrangements can be optimized andcreated during the planning run.

The optimization run, similar to the heuristic run, is a quantity-based planningmethod without pegging. You cannot uniquely assign planned production ordersor purchase requisitions to the original sales order.

The above illustration provides an example of the optimizer:

1. There is demand at the distribution center. The net requirements calculationfinds no stock. The product is procured externally. The system analyzes thepossible transportation lanes. The optimizer makes global checks to find the mostcost-effective way of procuring the finished product and its components. The



entire quantity cannot be procured from the most cost-effective plant. As a result,procurement is distributed according to feasibility and costs, and distributed tothe plants using stock transfers.

2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,planned orders are created for the finished product, and dependent requirementsare created for the components. The plants have sufficient capacity to deliver theplanned orders. The supply chain planner does not need to intervene.

3. Components are then procured through the possible transportation lanesaccording to cost. The suppliers can supply enough. The supply chain plannerdoes not need to intervene.

Figure 21: Transition from Medium- to Short-Term Planning

If you decide to use both SNP and PP/DS for planning, the PP/DS and SNPhorizons are used to separate the areas of responsibility for these two planningfunctions. So, for example, the SNP planning run can only create planned ordersoutside of the SNP production horizon, and PP/DS can only create planned ordersinside of the PP/DS horizon. If requirements within the SNP production horizoncannot be covered by PP/DS, then SNP plans the receipt outside of the SNPproduction horizon (this corresponds to the logic of the PP/DS planning timefence in short-term planning). If the PP/DS horizon in the product master is set toa greater length than the SNP production horizon, this gives rise to an overlappingarea in which both SNP and PP/DS receipts can be created.

Supply Network Planning is used for medium- to long-term planning across theentire supply chain, especially if there are several plants and distribution centers.Demands are aggregated for a defined bucket, for example, a day. In this instance,it is irrelevant whether a demand is in an early shift or late shift. This is because



the demands are only planned roughly exact breaks are not taken into account.In addition to performing aggregated planning in SNP, you can also performstructural aggregated planning. You can define specific bucket resources to beused for SNP, which can represent the available capacity of an entire warehouse,for example. Because you create specific PPMs for SNP, which are usually copiedfrom PP/DS PPMs, you can describe production at these bucket resources. Ordersequences with their exact times do not play a role in Supply Network Planning.

PP/DS is used for short-term planning when orders need to be scheduled to theminute and when order sequences, that is sequence planning and optimization,need to be considered.

Pegging is the link between receipts and issues along the supply chain. Theplanning run determines which demand is covered by which receipt element; thisinformation is stored in liveCache. When an order is moved to an earlier or latertime, all dependent orders can be adjusted automatically due to this pegging.This function is only available in Detailed Scheduling and CTM. SNP is basedpurely on quantities and buckets.

Figure 22: Production Planning and Detailed Scheduling in SCM

Production Planning and Detailed Scheduling is mainly used for short-term,to-the-minute planning in the production plant, both for in-house production andexternal procurement.

PP/DS meets requirements by generating planned orders to plan in-houseproduction, in addition to purchase requisitions or schedule lines to plan externalprocurement.

The following factors can be used to integrate and distribute tasks between SNPand PP/DS:



SNP and PP/DS are responsible for different planning stages: You use SNPfor medium-term planning and PP/DS for short-term planning. Planning does notoverlap, which means that the PP/DS horizon and SNP production horizon havethe same length. As soon as SNP orders are within the PP/DS horizon, they areconverted into PP/DS orders.

SNP and PP/DS are responsible for different locations: You use SNP to planreceipts (stock transfers) at the distribution centers and PP/DS to plan productionplants. PP/DS provides detailed production planning based upon SNP stocktransfer requirements. This includes complete bills of material and the optimizedsetup for order sequences. This level of detail is not required when planningdistribution centers.

SNP and PP/DS share a planning horizon if the SNP production horizon isshorter than the PP/DS horizon. SNP has control over the planning of specificfinished products and their critical components. This means that SNP can planreceipts and determine the most cost-effective sources and lot sizes. You only usePP/DS to plan the receipts generated by SNP to complete the bills of material andfor sequencing, for example, optimization of setup times.

Deployment in SCM

Figure 23: Deployment

The deployment function in SNP plans the short-term distribution of the producedor procured products to the distribution centers. It determines when, and in whatquantity, inventory and planned receipts can be deployed to distribution centersand vendor-managed inventory (VMI) accounts. If the ATD (available-to-deploy)quantity is insufficient to cover all demands, the fair share rules define the DCprioritization. These generate feasible, or even optimized, distribution plans with



constraints (e.g. transportation capacities) and business rules (e.g. minimumcost approach or replenishment strategies), which can be transferred to ECC inthe form of executable stock transport orders. Deployment generates optimizedreplenishment plans that take into account short-term changes on the supply ordemand side as well as constraints, such as transportation and storage capacities.There are several deployment strategies that can be used, such as fair share, pushdeployment, and pull-push deployment.

Figure 24: Transport Load Builder

The Transport Load Builder (TLB) is used to convert the results of the deploymentrun into SAP ECC stock transport orders or VMI sales orders that include severalitems for several products. The TLB ensures that:

The transport vehicles are filled to the maximum capacity,

No means of transport is dispatched that is not filled to at least minimum capacity.

The TLB uses transportation capacities efficiently by grouping together SCM stocktransfers. The system checks the planned stock transfers against the minimum andmaximum values defined in the system. If the planned stock transfers do not meeteither the minimum or maximum requirements, the system activates an alert andthe planner can readjust the TLB plan accordingly.

The TLB can also split stock transfers. It is a lot sizing procedure for stocktransfers which can also be used as a preliminary step for SCM TransportationPlanning and Vehicle Scheduling (TP/VS).



Figure 25: Vendor-Managed Inventory (VMI)

VMI customers (both ship-to and sell-to customers) are created as locations in thesupply network and connected to the supply chain through transportation lanes.You create location product master records for the VMI location and define theplanning parameters there.

The purpose of VMI is to include key customers in the supply chain plan. ForVMI to function correctly, you need to know your customer's inventory and salesforecasts. VMI planning generates planned stock transfers between the DC andthe customer location. Deployment and the Transport Load Builder build thetransport loads and guarantee that the products are available, so that the VMI salesorders from SCM can be generated in ECC.

The data required for VMI planning, such as stock levels, stock on hand, andsales forecasts, is transferred by EDI messages and stored as persistent data inSCM. The important messages are EDI 852 (Product Activity Data) and EDI 830(Forecast). SCM receives these messages in the form of a standardized PROACTIDOC to avoid data conversion and interpretation problems. These problemscan also be resolved by EDI converters.

Depending on the agreement between the business partners in a VMI relationship,SCM can be set up to automatically create sales orders in SAP ECC using VMI,which minimizes the administrative work involved.



Figure 26: Integration between SCM and SAP ECC

The above graphic shows how transaction data is exchanged between SCM andthe connected execution systems. These systems (for example, ECC systems) areknown as online transaction processing (OLTP) systems.

You can transfer the results of Demand Planning as planned independentrequirements to the OLTP systems, which is similar to the transfer from FlexiblePlanning or Sales and Operations Planning (SAP ECC) to Demand Management.

You can transfer the SNP planning results to the OLTP system as planned orders,purchase requisitions, and stock transport requisitions.

You can also transfer the PP/DS planning results to the OLTP system as plannedorders, purchase requisitions, and stock transport requisitions. If you convert SNPplanned orders into PP/DS planned orders, the planned orders are adjusted in theOLTP system. Planned orders can only be transferred to the OLTP system asproduction orders from PP/DS.

Deployment and the TLB confirm stock transport requisitions and can convertthese requisitions into SAP ECC stock transport orders or VMI sales orders.

To configure the type of transfer you want, select: APO Supply Chain Planning Supply Network Planning (SNP) Basic Settings Configure Transfer toOLTP Systems.



Figure 27: Collaborative Planning in SCM

Collaborative planning includes the process by which different companiesalong the supply chain have access to shared information over the Internet (i.e.across company boundaries) and work with the common goal of identifying andremoving bottlenecks or date shifts as early as possible. Through collaborativeplanning, companies can exchange demand, procurement, and stock data withother companies.

You can define your own exception messages or alerts and integrate these alertsinto the general alert management. If exceptions occur during planning, e-mailmessages or fax messages can be generated automatically. SCM CollaborativePlanning supports the Collaborative Planning Forecasting and Replenishment(CPFR) standard. A Web browser is sufficient for exchanging collaborativeplanning data.



SNP: Configuration

Figure 28: Configuration of Supply Network Planning (SNP)

A planning area is the central data structure of DP and SNP. It defines thekey figures for planning and associated activities. It also determines whetherthe planning results are saved as orders or time series in liveCache. Since thecharacteristics and key figures differ for Demand Planning and Supply NetworkPlanning, different planning areas are created for DP and SNP. The planning areadefines the planning characteristics and key figures and must be initialized foreach planning version.

A key figure is a numerical value that describes either a quantity or a value; forexample, future demand value in dollars or future demand quantity in pallets.

Characteristics are the objects for which business data is aggregated, desegregated,and evaluated.

Key figure data can be read from order objects or time series objects.

The most important tool for the SNP planner is the planning book. You useplanning books to prepare a planning area's data for planning. The planner doesnot maintain the planning area.



Figure 29: The Application Architecture of SAP SCM

Aggregated actual data can be transferred from OLTP, Business InformationWarehouse (BW), Excel, and Legacy systems to SCM and saved in InfoCubes.This data is used as the basis for forecasting. The demand plan is created as aresult of the forecast.

You release the demand plan to production planning, which generates plannedindependent requirements for Supply Network Planning (SNP) and PP/DS. Youcan also transfer the demand plan to the execution systems (OLTP) as plannedindependent requirements.

The seamless integration with SNP and PP/DS supports efficient Sales andOperations Planning (SOP).



Exercise 2: SNP Heuristic and ECCIntegration

Exercise ObjectivesAfter completing this exercise, you will be able to: Identify planning horizons in SCP and SNP Define the SNP process flow Identify SNP planning strategies

Business ExampleSince we need only establish the master data and the models during this course,this exercise should once again give you an idea of interactive planning withthe heuristic. You can also view the CIF integration for SNP transaction datahere. Later on we will work with versions of inactive models, and will thereforeno longer be able to use integration.

Task 1:1. In SAP ECC, create a planned independent requirement for product

(material) T-F2## at plant 2400. In version 00, schedule a plannedrequirement quantity of 400 pieces for two months from todays date, andsave the planned independent requirement.

Task 2:

1. Open interactive Supply Network Planning in SCM. Open the selectionwindow and, next to Show, select APO - Location product. Version 00 isdisplayed automatically. In the row below this, enter APO PRODUCT again,and enter your product T-F2## to the right of that. Load the data for theproduct at location 2400 into the planning table.

Task 3:1. Look at the future periods and check whether the planned independent

requirement that you created for distribution center 2400 is displayed. Checkin which key figure the planned independent requirements are shown.Ascertain that no distribution demands and production orders yet exist forproduction plants 1000 and 2300.




Task 4:

1. Run the network Heuristic in change mode and save the planning results.Check the situation of your product T-F2## for distribution center 2400.

Verify that there are now values in the Total receipts row.

Which plants are supplying the receipts?

Also check that planned orders were created in plants 1000 and 2300.

Task 5:

1. Go to the PP/DS product view for product T-F2##, location 1000, andversion 00. Double-click on the SNP planned order. Note down the startdate and finish date.

Start Date:Finish Date:

Convert the SNP planned order into a PP/DS order. Compare the new startdate, finish date, and requirements with those you noted down previously.Set the conversion indicator and save the order.

Task 6:

1. Check whether the receipts were transferred to the connected SAP ECCsystem. Log on to the SAP ECC system and access the stock/requirementslist for your product T-F2## in plants 1000, 2300, and 2400. Why has aproduction order already been created in plant 1000?



Solution 2: SNP Heuristic and ECCIntegrationTask 1:1. In SAP ECC, create a planned independent requirement for product

(material) T-F2## at plant 2400. In version 00, schedule a plannedrequirement quantity of 400 pieces for two months from todays date, andsave the planned independent requirement.

a) SAP menu: Logistics Production Production PlanningDemand Management Planned Independent Requirements Create

Enter the material and plant. Choose Enter to access the planningtable. In the Sched. lines tab page, enter the requirement date that isexactly two months from today in day format (you must change the dateparameters in the first column from M to D) as the requirementsdate, and a planned quantity of 400.

Task 2:

1. Open interactive Supply Network Planning in SCM. Open the selectionwindow and, next to Show, select APO - Location product. Version 00 isdisplayed automatically. In the row below this, enter APO PRODUCT again,and enter your product T-F2## to the right of that. Load the data for theproduct at location 2400 into the planning table.

a) Advanced Planning and Optimization Supply Network PlanningPlanning Interactive Supply Network Planning

Open the selection window using the Selection window icon.Next to Show, select APO - Location product. Version 00 isdisplayed as a condition. In the next row, enter APO Product again,

and enter your product T-F2## to the right of that. Choose Copy.Your selection will now be adopted and shown in the selection window.

Double-click on your product T-F2## for distribution center 2400. Thedata for this selection is now displayed in the planning table.




Task 3:1. Look at the future periods and check whether the planned independent

requirement that you created for distribution center 2400 is displayed. Checkin which key figure the planned independent requirements are shown.Ascertain that no distribution demands and production orders yet exist forproduction plants 1000 and 2300.

a) You find your planned independent requirement approximately eightweeks in the future, in the Total demand key figure.

Double-click on the Total demand row. The planned independentrequirement is displayed in the Forecast key figure. All key figures(forecast, sales order, dependent demand, distribution demand)contribute to the total demand.

Double-click on your product T-F2## for plant 1000. There are stillno production quantities or distribution demand displayed because theplanning run has not been started yet.

Task 4:

1. Run the network Heuristic in change mode and save the planning results.Check the situation of your product T-F2## for distribution center 2400.

Verify that there are now values in the Total receipts row.

Which plants are supplying the receipts?




Also check that planned orders were created in plants 1000 and 2300.

a) Go to change mode by selecting the Change icon and chooseNetwork to start the Heuristic run. The selected location is not

significant here.

After the planning run, a value will be displayed in the Total receiptsrow.

Note: If the Total receipts row shows a plus sign in the

magnifying glass

then the details are not displayed. Double-click on the rowto display the details.

The stock transfers created by the heuristic are displayed in theDistrReceipt (Planned) key figure. Right-click on the row with thereceipt Display detail. The receipts from the plants are displayed inthe lower section of the screen.

Production plants 1000 and 2300 supply distribution center 2400according to the quota arrangement for product T-F2##.

Save your data .

Task 5:

1. Go to the PP/DS product view for product T-F2##, location 1000, andversion 00. Double-click on the SNP planned order. Note down the startdate and finish date.

Start Date:Finish Date:




Convert the SNP planned order into a PP/DS order. Compare the new startdate, finish date, and requirements with those you noted down previously.Set the conversion indicator and save the order.

a) Advanced Planning and Optimization Production PlanningInteractive Production Planning Product View

Enter your version 00, product T-F2##, location 1000 and select

continue (enter) ; confirm any messages that appear.

Double ckick on the SNP planned order to view the dates. Select the

Back icon to return to the product view.

Switch to Change mode by selecting the icon.

To convert; select the appropriate SNP planned order and press theConvert SNP Orders button. The PP/DS planned order is now

created with the PP/DS bill of material (BOM) and routing.

Double click on the new planned order to view the detailed dates.

Select the Back icon to return to the product view.

To convert the PP/DS planned order to a production order; set theConversion Ind.indicator for the appropriate planned order.

Save your changes .

Task 6:

1. Check whether the receipts were transferred to the connected SAP ECCsystem. Log on to the SAP ECC system and access the stock/requirementslist for your product T-F2## in plants 1000, 2300, and 2400. Why has aproduction order already been created in plant 1000?

a) SAP ECC standard menu: Logistics Production MRP Evaluations Stock/Requirements List

Enter your material number as well as plant and select Enter . Aproduction order was already created in plant 1000, because you usedthe conversion indicator to convert the PP/DS planned order in SCMinto a production order.



Lesson Summary

You should now be able to: Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture


Unit Summary SCM230

Unit SummaryYou should now be able to: Discuss the advantages of Supply Network Planning Explain the tasks of models and versions of the supply chain Describe the needed master data objects Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture


Unit 2Master Data and Transaction Data in

SNP

Unit OverviewIn this unit you will learn how to identify the master data objects for a supplychain. The task of creating transportation lanes is dealt with. Next, you willidentify which settings in the product master and in the resource master dataare important for SNP planning. You will also identify the components of theproduction data structure (PDS) and of the production process model (PPM)and be able to differentiate between them. You will then compare the tasks ofPP/DS and SNP. Finally your will learn about transaction data objects such asindependent requirements, sales orders, planned orders, purchase requisitions andstock transfers in the SNP environment and will understand the integration ofthese data objects with the execution systems.

Unit ObjectivesAfter completing this unit, you will be able to:

Identify the Master Data objects for a supply chain Create transportation lanes Identify the product and material master data needed for SNP planning. Identify the resource master data in SNP Define the various types and categories of resources Explain scheduling in SNP Compare and contrast ways of generating bills of materials and routings

for SNP via PDS and PPM Generate SNP plans (PPMs) from PP/DS plans (PPMs) Create an SNP production data structure from SAP ECC Display the SNP production data structure in SAP SCM Plan with the SNP production data structure Navigate in the Quota Arrangement Describe the various planning methods Identify the transaction data used in SNP


Unit 2: Master Data and Transaction Data in SNP SCM230

Describe the process of integrating transaction data

Unit ContentsLesson: Working with Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Exercise 3: Transportation Lanes ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Lesson: SCM Product Master . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Exercise 4: Product Master Data.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Lesson: SCM Resource Master.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Exercise 5: Resource Master Data.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Lesson: Scheduling in Supply Network Planning... . . . . . . . . . . . . . . . . . . . . . . . . . 91

Exercise 6: Planning (PPM) Master Data .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Lesson: The Production Data Structure ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105

Exercise 7: Creating a Production Data Structure ... . . . . . . . . . . . . . . . . . . 111Lesson: Source Determination in SNP... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116

Exercise 8: Quota Arrangements ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121Lesson: Transaction Data in Supply Network Planning.. . . . . . . . . . . . . . . . . . .124


SCM230 Lesson: Working with Master Data

Lesson: Working with Master Data

Lesson OverviewThis lesson will give you an overview of the master data objects for a supplychain. You will also learn how to create transportation lanes in Supply NetworkPlanning (SNP).


Identify the Master Data objects for a supply chain Create transportation lanes

Business ExampleThe manufacturing plants, distribution centers, vendors, and customers ofPrecision Pump Company are spread across different cities in U.S. and Europe. Asthe Planning Manager at Precision Pump Company, you need to control the overallplanning of the supply chain. To do this, you need to define all the data objects thatwould complete the supply chain. You also need to ensure that the products reachthe customer from the manufacturing plant on time and in a cost-effective manner.

Master Data Objects

Figure 30: Master Data Objects in the Supply Chain

The master data objects for the supply chain are usually created in SAP ECC.Master data objects include plants, distribution centers (DCs), vendors, andcustomers. Supply chain planning uses materials that are defined as materialmasters. In addition to creating the materials for planning, you need to create



resources, Bills of Material (BOMs), and routings for plants that produce and plan.In SAP SCM, you define transportation lanes between the individual supply chainlocations, such as plants and suppliers. These transportation lanes determine theflow of material through the supply chain.

Even when you use an SAP SCM system for supply chain planning, you createmaster data in the running ECC systems and then transfer this data to SAP SCM.Only master data that exists in SAP SCM and not in SAP ECC is created in theECC system.

In SAP SCM, transportation lanes connect locations so that stock transfers canbe planned between these locations. In SAP ECC, corresponding lanes canbe maintained, for example, in the form of special procurement keys that aretransferred to the transportation lane as a product-specific entry.

The supply relationship between a vendor and a plant is created in SAP ECC inthe form of a purchasing info record or outline agreement. When you transferthese external procurement relationships to SAP SCM, they are displayed asexternal procurement relationships that are created as a product-specific entryin the appropriate transportation lane.

Figure 31: Master Data Maintenance in SCM

As the management of master data in SCM is different for every master data objectwith regard to models and versions, the slide provides an overview of the ways ofmaintaining the different master data:

Locations are normally transferred from SAP ECC and assigned automatically tomodel 000. They are not model-specific and can be maintained version-specificwith the exception of a few TP/VS fields.



Products are normally transferred from SAP ECC and assigned automaticallyto model 000. Location product master records can be created and changed inrelation to a specific version (option Choose Planning Version).

Resources are normally transferred from SAP ECC, assigned automatically tomodel 000, and created for all versions of model 000. For this purpose, in ECCdefine whether the resource is to be transferred as a single, mixed, or bucketresource.

Caution: If you do not change a resource for the version, the resource isonly changed globally and not for each version.

Plans (production process models - PPMs) are normally transferred from SAPECC and assigned automatically to the model 000. They cannot be maintained permodel or per version. SNP plans (PPMs) can be generated from PP/DS plans andare automatically assigned to Model 000.

PP/DS and SNP production data structures (PDS) are transferred directly fromSAP ECC and can only be changed in the source system.

Transportation lanes are created in the SCM system for a specific model. Externalprocurement relationships and special procurement keys are normally transferredfrom SAP ECC and automatically assigned to the transport lane of the activemodel. Certain product-specific fields can be changed respective to their version.

Quota arrangements are created in the SCM system for a model or a version.A quota arrangement specifies which proportion of the required quantity of aproduct is to be procured from a source of supply (incoming quota arrangement)or supplied to a location (outgoing quota arrangement). Quota arrangements canbe maintained for the model or the version.

Figure 32: Locations in the Supply Network



You would normally decide first which location types are to be transferred fromECC. In any case, you would transfer the plants and distribution centers that youwant to plan in SCM. If you want to plan according to storage location, you needto define storage location MRP areas in ECC and transfer such as an individuallocation with location type 1007. You only transfer vendors for whom you want torun a source determination in SCM. Customer locations are only transferred whenVMI customers are involved, i.e. customers for whom SCM is to automaticallycreate sales orders in ECC. Subcontractor locations are only transferred whensubcontracting is to be planned in SCM. If needs be, you can use transportationzones in SNP for grouping in the TLB. None of the other location types havea part to play in SNP.

Hint: In SNP you can plan every location, regardless of the locationtype. The concept is also more general than in ECC, where you can onlyplan plants and MRP areas.

Caution: Please note that the location type is not part of the locationkey. Because of this, you cannot transfer customer 0000001000 andsupplier 0000001000: in this case you must add prefixes, for exampleC for customer and S for supplier.

Production, shipping, and warehouse calendars can be defined for each location.

You can assign handling or storage resources to locations to display aggregatedhandling or storage capacities.

The geographic data is used to position the location on the geographic map ofthe Supply Chain Engineer and to calculate the transport duration of the meansof transport in the transport lane. If you enter this data during location datamaintenance, you can specify where you want the location to be positioned onthe map. If you leave these fields blank, they are filled automatically when youplace the location on the map.

The VMI Cust, tab page only applies to location type '1010 Customer.' Here,you store the sales data for creating the sales orders in ECC. In addition, thereare also application-specific settings and enhancements in Customizing for theVMI scenario.

The TDL tab page is only activated when you select location type 1020 (carrier)and is only required for transportation planning (TP/VS) in SCM. There are someinput fields activated for location type, 1007 MRP area, which are not available tothe other location types.



Figure 33: Plants and Distribution Centers

A plant is an organizational unit that subdivides an enterprise according toproduction, procurement, stockholding, or material planning. A plant canproduce materials or provide goods and services. The address, language, countryassignment, and factory calendar (if defined in SCM) from SAP ECC aretransferred to SCM for the plant.

A distribution center (DC) is also a plant in ECC that mainly sells products anddistributes goods. There is no functional difference in SNP between plantsand DCs. Different icons are only used in the supply chain to distinguishbetween plants and DCs. If you want to transfer ECC plants into DCs, create anappropriate entry in SAP-ECC-Customizing IMG Production DistributionResource Planning (DRP) Basic Settings Maintain Assignment of NodeType - Maintain Plant. This means that plants also have the entire sales anddistribution function of DCs. Analogously, DCs in SNP also have productioncapabilities. However, certain functions, such as packaging in DCs in PP/DS,can lead to problems.

In SAP ECC, one or more storage locations can be defined within a plant. Astorage location specifies where a material is stored and enables material stocks tobe differentiated within a plant. If you want to plan according to storage location,you need to define storage location MRP areas in ECC and transfer such as anindividual location with location type 1007.



Figure 34: Customers and Suppliers

Customers and suppliers are defined as business partners in SAP ECC; they allowsales and purchasing processes to be controlled.

Sales and distribution processing as such plays no role in SAP SCM. You cannotcreate sales orders in SCM. Customer locations are only transferred when VMIcustomers are involved, i.e. customers for whom SCM is to automaticallycreate sales orders in ECC. If you want to be able to plan the transportation of aproduct to a customer in TP/VS, transfer the customer master record to SCMas a corresponding location.

The source of external procurement can be determined using SAP ECC or SAPSCM. Supplier master records can be transferred to the SAP SCM system forplanning in SAP SCM. In this case, the purchaser works in SCM and can alsoconvert purchase requisitions to purchase orders in SCM. Purchase order handling,goods receipt, and invoice verification take place in SAP ECC.



Using Calendars for Scheduling

Figure 35: Using Multiple Calendars for Planning

The above graphic shows the calendars that are used to determine the durationof stock transfers. Calendars can be assigned to locations, transportation lanes,and resources. You can maintain production, shipping, and warehouse calendarsfor locations.

The shipping calendar is used to schedule the goods receipt (GR) and goods issue(GI) processing time and when releasing from Demand Planning for the creationof planned independent requirements.

The transportation time and the calendar in the transportation lane are used toschedule the duration time of the shipment.

If a calendar has been defined for a resource, run times are determined from this,taking workdays into account.



Transportation Lanes

Figure 36: Transportation Lanes

A transportation lane in SCM represents a business relationship between thelocations that you can use to transport goods. The lanes and locations representthe supply chain network. Material flow is defined by the direction of thetransportation lane between the start and end location. Transportation lanes aredivided into three parts:

Product-specific entries Parameters for means of transport Product-specific entries for means of transport

You can ma

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SCM230 - SCM_SAP_SNP