1. Deployment & Available-to-promise (ATP) in SCM EIN 5346 Logistics Engineering Fall, 2014

2. Deployment & Available-to-promise (ATP) in SCM Theories & Concepts

3. Deployment & ATP CTP Modules in SCM
Review
Deployment
Deployment setting
Available-to-deploy (ATD)
Available-to-receipts (ATR)
Available-to-issues (ATI)
3) Deployment strategy
4) Transport Load Builder (TLB)
3. Available-to–promise (ATP)
1) Capable-to-promise (CTP)
2) Multi-level ATP (ML-ATP) check

4. Deployment and ATP CTP Modules in SCM

5. Planning with SAP ERP & SCM
Basic Components of SAP SCM
SAP ECC ERP
SAP SCM (includes SAP BW)
Core Interface (CIF)
Demand Planning
Supply Network Planning and optimization
Production Planning with capacity considerations
ATP
CTP
Detailed Scheduling
Deployment
Transportation planning
Vehicle routing and scheduling
Mater data
Materials
Locations
Partner
Plants
Info records
Transactional data
Customer orders
Production orders
Purchasing orders
Execution

6. Work Flow in SAP SCM

7. Deployment
Deployment determines which distribution requirements of the distribution centers or VMI customers can be covered by the existing supply
Deployment is required after SNP (mid to long term) planning and after detailed PP/DS planning for production

8. Deployment Setting

9. Deployment Setting
If the available quantities are not sufficient to meet demand or if they exceed the demand, deployment makes adjustments to the stock transfers created by the SNP run.
The system reduces the stock transfer and decides how much will be deployed to each distribution center.
The deployment heuristic reaches this decision by using defined rules.

10. Deployment Setting
If the quantities that are actually produced, procured and the demands match the Supply Network Planning (SNP) planning quantities, deployment merely confirms the stock transfers.
The quantities of different products confirmed by deployment can be combined into stock transport orders by the Transport Load Builder (TLB).
Deployment and TLB are used to confirm stock transfers.

11. Available-to-deployment (ATD)
When procurement and production are finished, the system checks which product quantities are actually available in the source location (location with stock).
The total of these product quantities is referred to as the available to deploy (ATD) quantity.

12. Available-to-receipts (ATR)
In standard category group ATR (available-to-receipts), you group together all the ATP (available-to-promise) categories that are to be taken into account as receipts for deployment.
Receipts include stock, production orders, and purchase orders.
ATP consists of ATR and ATI

13. Available-to-issues (ATI)
In standard category group ATI (available-to-issues), you group together all the ATP categories that are to be taken into account as issues for deployment.
Issues include sales orders and reservations.
The ATD (available-to-deploy) quantity is calculated from category groups ATR and ATI.
ATD = ATR + ATI?

14. Available-to-Deploy (ATD)
ATD = ATR + ATI?

15. Deployment Strategies
Pull deployment
Pull horizon

16. Fair Share (Review) Rule A: Percentage distribution by demand
If demand exceeds supply, the system can use fair share rules to calculate deployment using the available-to-deploy (ATD) quantity. Various methods use fair share rules to assign a limited amount of available product to sources of demand. The following rules are available
Rule A: Percentage distribution by demand
Rule B: Same absolute quantity of shortage for target locations
Rule C: Percentage division by quote arrangement of source location
Rule D: Division by priority of target locations.
ATD: available-to-deploy

17. Fair Share Rules A and B (review)
When insufficient supplies,
Rule A, by percentage. 225 = 300 x (300/400)
Rule B, by the same insufficient quantity =

18. Fair Share Rules A and B (review)
When insufficient supplies,
Rule A, by percentage. 225 = 300 x (300/400)
Rule B, by the same insufficient quantity =
200
200

19. Incoming/Outgoing Quota Arrangement
Incoming quota arrangement:
Use an incoming quota arrangement to specify which proportion of a requirement is to be procured from which source location (e.g. vendor).
Outgoing quota arrangement:
Use an outgoing quota arrangement to determine which proportion of the receipts is to be delivered onward to which destination location (e.g. one of your distribution centers).

20. Quota Arrangement

21. Deployment Strategy for Heuristic (Review)
SNP only uses push rules to calculate deployment if the ATD quantity covers the demand. The following rules are available:
Pull deployment:
Deployment fulfills all of the demand within the pull deployment horizon. Products are distributed according to the due date specified at the demand locations. The system does not distribute any supply to the demand source in advance of the demand date.
Pull/Push deployment:
The system immediately distributes all supply to the demand locations (ignoring the demand dates specified at the demand locations) to fulfill all demands within the pull deployment horizon..
Push by demand:
System immediately distributes the entire supply for the entire planning horizon to the demand locations to fulfill all demands. The pull deployment horizon is ignored.
ATD: available-to-deploy

22. Example of Deployment Strategy (review)
The following example illustrates the three push rules: Pull distribution, pull/push
distribution, and push distribution by demands.
Pull: good issues
Push: from the good receives side

23. Example of Deployment Strategy (review)
The following example illustrates the three push rules: Pull distribution, pull/push
distribution, and push distribution by demands.
Pull: good issues
Push: from the good receives side

24. Transport Load Builder (TLB)

25. Transport Load Builder (TLB)
In the TLB profile, the minimum and maximum values for volume, weight, and pallets are defined per load.
System automatically groups transportation recommendations for individual products together until the minimum values for volume, weight, and number of pallets specified in the TLB profile for creating a load have been reached.
If transportation recommendations cannot be converted, the system generates an alert and the planner can convert the transfers manually.

26. Available-to-deployment (ATD)
In Customizing, you defines if you want deployment to create stock transport orders or VMI sales orders.
Alternatively, you can use TLB to group together stock transfer of different products and generate stock transport orders or VMI sales orders with many items for different products.

27. Transport Load Builder (TLB)
TLB groups planned stock transfers into practical freight units. System can create full pallets with mixed products.
User can also define flexible rule relationships for linking the upper and lower limits.

28. TLB Rules
Connecting upper limits with “and”, & lower limits with “or”: The TLB cannot exceed the defined upper limits when the shipments are built. In addition, at least one of the lower limits must be reached or exceeded in line with how you defined the rule.
Connecting upper limits with “and”, & lower limits with “and”: The TLB cannot exceed any of the defined upper limits. In addition, all defined lower limits must be reached or exceeded.
3. As well as the standard connections, you can also establish user-defined relationship between the rules. Using the AND and OR operators as well as brackets, you can define which combination of these rules the TLB should use while building the shipments.

29. Deployment and Transport Load Builder (TLB)
Summary
Deployment determines which distribution requirements of the distribution centers (or VMI customers) can be covered by the existing supply. If quantities are sufficient to match demand, Deployment merely confirms the plan. If not it will adjust the stock transfer to take in account the missing quantities.
The TLB, ensure that the means of transport are loaded close to their full capacity or, at least, over their minimum capacity

30. Available-to-promise (ATP)
ATP check – also known as the availability check – represents an online search that should ensure that a company can provide the requested product at the requested time in the quantity requested by the customer.
The ATP check can use the basic methods below to determine if a requirement can be confirmed.
Basic methods:
Capable-to-Promise (CTP)
Multilevel ATP Check

31. Capable-to-promise (CTP)
CTP allows to check for free capacity, which normally performs at finished goods level.
There are two options to make CTP check:
Bucket-oriented CTP
Time-continuous CTP
Bucket-oriented CTP is to check the capacity based on a finite bucket capacity and doesn’t regard the detailed sequence of orders within the bucket.
CTP triggers the creation of planned orders by ATP check.

32. Procedure of Capable-to- promise (CTP)

33. Multi-level-ATP (ML-ATP)
ML-ATP checks components according to ATP setting. It confirms a customer request if components for the product are available in time, i.e. taking the lead time to produce the finished product into account.
If the components have a late availability, the availability of the finished product is recalculated in ATP using correlations.

34. Multi-level ATP (ML-ATP)

35. Deployment & Available-to-promise (ATP) in SCM SAP Implementation

36. Define SNP Deployment Profile

37. Define SNP Deployment Profile

38. Define SNP Deployment Profile

39. Define SNP Deployment Profile

40. Transport Load Builder (TLB)

41. Create Means of Transport to Transportation Lane

42. Assign TLB Profile to Means of Transport

43. Transportation Lanes on Planning Book

44. TLB Shipments

45. SCM Homework (Due date: 11/14/2014)
Network planning with heuristic
Network plan with multilevel heuristic
Check results in ERP
Deployment planning settings
Available to deploy
Define SNP deployment profile
Define transport load builder (TLB) profile