Enterprise Systems Optimization Spring, 2012

SCM Overview

APO Core Interface (CIF)

Common Supply Chain Processes VMI: vendor managed inventory

Common Time Horizons for SCM Processes VMI: vendor managed inventory

Linear Programming (LP)

Five common types of LP problems

Five common types of LP problems

Steps in Formulating LP Problems Define the objective Define the decision variables Write the mathematical function for the objective (objective function) Write a one- or two-word description of each constraints Write the right-hand side (RHS) of each constraint, including the unit of measure. Write<=, =, or >= for each equation Write all the decision variables on the left-hand side of each constraints Write the coefficient for each decision variable in each constraint.

Graphical Solution

Transportation (Network) Problem

Enterprise Systems Optimization SAP Implementation

SAP Business Suite SAP ECC SAP NetWeaver SAP SCM SAP PLM SAP SRM SAP CRM SAP ECC

Level of Detail and Time Horizon for SAP APO Modules

SCM Processes in SAP APO Modules DP: demand planning TP/VS: transportation planning and vehicle routing SNP: supply network planning VMI: vendor managed inventory PP/DS: production planning and detailed scheduling

SAP APO System Structure and Integration with SAP ERP LIS: logistics information system: transportation data CIF: core (information) interface: master data ATP: Available to promise

SAP SCM Functionality THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

SAP SCM Modules THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

Two planning Scenarios for SAP SCM Alternative Scenario Base Scenario

Supply Planning Tasks and Output for SCM Identify sources for finished products Plan and consider safety levels in any location Distribute production over plants Choose production resources in plants Explode bill of materials in plants Identify sources for supply of raw materials and components Outputs Purchase requisitions Stock transport purchase requisition Planned production orders

Work Flow for our Exercises

SCM Sample: USA: 2 vendors 1 plant 2 DCs 2 customers Germany: DE-Customer DE-DC1 DE-Plant DE-Vendor US-Vendors US-DC1 US-Customers DE-DC2 US-DC2 USA: 2 vendors 1 plant 2 DCs 2 customers Germany: 1 vendors 1 plant 2 DCs 1 customers Author: 22

North American Supply Chain One plant (DL) Two DC’s (CA and FL) Two Vendors (NY and MI) Two Customers (WA and MS)