Master Data for SCM (1) Master Data in Demand Planning & Fulfillment Processes EGN 5346 Logistics Engineering Fall, 2015

Master Data Overview Master data plays an important role in APO and control many processes. Some master data objects in APO have analogies in ERP like product (Material in ERP), and most of these are transferred from ERP. Others have to be maintained in APO. Most organisational entities from ERP are not needed for APO, which is only concerned with logistics and not accounting and costing; so organizational entities such as company codes, or cost centers have no significance in APO.

Master Data Objects in SAP APO and SAP ERP PI – Process integration

Location Types in SAP APO

DP Function in SCM BW: business data warehouse OLTP: online transaction processing OLAP: online analytical processing HANA: High-Performance Analytic Appliance OLTP: online transaction processing OLAP: online analytical processing HANA: High-Performance Analytic Appliance

Time Horizons for DP and Sales in SCM Demand planning takes the longest time horizon in APO Modules. VMI: vendor managed inventory

Level of Detail and Time Horizon of DP in APO Modules SNP: Supply Network Planning ATP: Available-to-promise TP: Transportation Planning VS: Vehicle scheduling PP: Production Planning DS: Detailed scheduling Demand planning is at lowest level of details.

DP and Sales Processes in APO Modules DP: demand planning is in APO-DP module and Sales process is in APO-ATP module. TP/VS: transportation planning and vehicle scheduling SNP: supply network planning VMI: vendor managed inventory PP/DS: production planning and detailed scheduling

DP Module in APO System Structure and Integration with ERP The data for DP comes from Info cubes (Business Data Warehouse). DP output combined with time series basically go to SNP, PP/DP, and TP/VS for further processing. An option for DP output is to go to ERP. ATP: available to promise LIS: logistics information system: transportation data CIF: core (information) interface: master data ATP: Available to promise CIF: Core interface LIS: Logistics Information System

Overview Master Data and Application in DP and Sales Master Data for Demand Planning: - Product CVC (characteristic value combinations) Master data for Sales: - Location, Product, Rules CVC: characteristic value combinations PPM/PDS

Planning Levels and Consistent Planning The most primitive questions in DP are: on which levels (product, product group, …) to plan? in which periods of time (weeks, months) to plan? which data is required? In APO, planning levels are represented by characteristics (CVC), the period of timer corresponds to the time (i.e., time bucket), and the data (linked to “key figures” such as revenue and sold quantity).

Overview Master Data and Application in DP and Sales PPM/PDS

Process for Demand Planning Result of the demand planning process: independent requirements which will trigger the planning activities of distribution, production and procurement planning.

Data Structure for Demand Planning

Planning Levels and Consistent Planning Planning shall take place on the levels of sales organization, location, product and product group. Each product belongs to only one product group Key figures include sales forecast and demand plan.

Planning on Aggregated Level

Automatic Disaggregation

Active Characteristic Value Combinations (CVC) Location The CVCs are 24 (3 sales organizations x 2 locations x 2 product x 2 product groups), in theory and 16 CVCs are active. The CVCs are 24 (3 sales organizations x 2 locations x 2 product x 2 product groups), in theory and 16 CVCs are active.

CVC for the Use of DP-BOMs

CVC for the Use of DP-BOMs 5 10

CVC for the Use of DP-BOMs 5 50 100 150 10 100 200 300

Order Fulfillment Overview Sales order entry is performed in ERP either manually or via EDI (EDI - Electronic Data Interchange), but ATP check is carried out in APO during the sales order entry. Transportation planning is performed in APO based on the deliveries and sends shipments back to ERP. EDI: Electronic Data Interchange

Tasks during Sales Order Entry

Location Substitution with /Without Stock Requisition

Exercises: (Due date 12/5/2015) 1. SCM resource setting 2. Change work centers 3. Create purchasing information records 4. Display info records by vendor 5. Create demand in SAP ERP - Change planning strategy - Create demand for the finished products