Sales and Inventory Planning with SAP APO

After finishing his studies in business administration at Fachhochschule Nordostniedersachsen in Luneburg, Germany, and at John Moores University in Liverpool, England, Marc Hoppe joined CAS AG, Germany as an SAP developer in the logistics and production planning areas. Later, he became a logistics consultant and was responsible for implementing national and international SAP R/3 projects. Since 1998, he has worked as a Supply Chain Management (SCM) consultant at SAP SI AG. Marc Hoppe is responsible for the business-relevant and IT-based implementation and optimization of SCM processes, as well as the re-engineering of entire supply chain processes. In 2001, he became Consulting Director for SCM, and since 2003, he has managed additionally the Supplier Relationship Management (SRM) unit. Marc Hoppe consults for large corporations such as Siemens, Unilever, Gillette, Philips, Deutsche Telekom, and Philip Morris, as well as medium-sized companies like G+H Isover or Fertiva. He has published numerous works on inventory optimization.

1. Introduction ... 15
... 1.1 Definition of Supply Chain Management (SCM) ... 15
... 1.2 Market Challenges Facing the Supply Chain ... 15
... 1.3 From Material Requirements Planning (MRP) to Supply Chain Management ... 16
... 1.4 Planning as a Critical Process ... 19
... 1.5 Target Group and Structure of this Book ... 19

2. Overview of SAP APO ... 21
... 2.1 Requirements of Supply Chain Networks ... 21
... 2.2 Key Functions of SAP SCM ... 22
... 2.3 Demand Planning (DP) ... 30
... 2.4 Inventory Planning (in Supply Network Planning) ... 33
... 2.5 Integrated Supply Chain Planning ... 38
... 2.6 Summary ... 40

3. Demand Planning with SAP APO-DP Basic Principles ... 41
... 3.1 Overview of the Administration of Demand Planning ... 41
... 3.2 Configuring the Administrator Workbench ... 43
... 3.3 Configuring the S&DP Administrator Workbench ... 52
... 3.4 Planning Books ... 64
... 3.5 Advanced Macros ... 71
... 3.6 Summary ... 76

4. Demand Planning with SAP APO-DP Implementation ... 77
... 4.1 Creating a Demand Forecast ... 78
... 4.2 Forecasts ... 103
... 4.3 Monitoring the Forecast Quality ... 145
... 4.4 Lifecycle Planning ... 161
... 4.5 Promotion Planning ... 175
... 4.6 Collaborative Demand Planning ... 180
... 4.7 Forecasting with BOMs ... 183
... 4.8 Result of the Demand Planning ... 190
... 4.9 Realignment ... 196
... 4.10 Summary ... 198

5. Inventory Planning with SAP APO-SNP Basic Principles ... 199
... 5.1 Supply Network Planning Process ... 200
... 5.2 Configuring the Supply and Demand Planning Administration Workbench ... 203
... 5.3 Planning Books ... 207
... 5.4 Advanced Macros ... 208
... 5.5 SNP Master Data ... 209
... 5.6 Summary ... 230

6. Inventory Planning with SAP APO-SNP Implementation ... 231
... 6.1 Desktop for Interactive SNP Planning ... 231
... 6.2 Planning Method: Heuristic-Based Planning ... 235
... 6.3 Planning Method: Optimization in the SNP Planning ... 249
... 6.4 Planning Method: Capable-to-Match (CTM) ... 288
... 6.5 Analyzing Planning Results ... 305
... 6.6 Comparing the Planning Methods ... 309
... 6.7 Safety Stock Planning ... 311
... 6.8 Deployment/Replenishment ... 336
... 6.9 Transport Load Builder (TLB) ... 354
... 6.10 Aggregated SNP Planning ... 365
... 6.11 Product Interchangeability in SNP Planning ... 376
... 6.12 Transferring SNP Planning Results ... 379
... 6.13 Summary ... 381

7. SAP APO Integration and Architecture ... 383
... 7.1 Integration with ERP Systems ... 383
... 7.2 Integration with SAP NetWeaver BI ... 389
... 7.3 Architecture and System Landscape ... 390
... 7.4 Summary ... 391

8. Implementation Process ... 393
... 8.1 Project Methodology ... 393
... 8.2 SAP Solution Manager ... 398
... 8.3 Project Organization ... 401
... 8.4 Summary ... 405

Appendix ... 407
... A. Literature ... 409
... B. List of Acronyms ... 411
... C. Glossary ... 415
... D. The Author ... 433

Index ... 435