1. Enterprise Systems Optimization Spring, 2012

2. SCM Overview

3. APO Core Interface (CIF)

4. Common Supply Chain Processes
VMI: vendor managed inventory

5. Common Time Horizons for SCM Processes
VMI: vendor managed inventory

6. Linear Programming (LP)

7. Five common types of LP problems

8. Five common types of LP problems

9. 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.

10. Graphical Solution

11. Transportation (Network) Problem

12. Enterprise Systems Optimization SAP Implementation

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

14. Level of Detail and Time Horizon for SAP APO Modules

15. 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

16. 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

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

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

19. Two planning Scenarios for SAP SCM
Alternative Scenario
Base Scenario

20. 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

21. Work Flow for our Exercises

22. 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

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