Real Optimization with SAP® APO (eBook)

Foreword 6
Preface 8
Contents 16
Conventions and Abbreviations 23
Introduction 25
1 Supply Chain Management and Advanced Planning Systems 26
1.1 Supply Chain Planning – a Brief Introduction 26
1.2 SAP APO as an Advanced Planning System 32
1.3 Fundamentals of Supply Network Planning in SAP APO 35
1.4 Planning Methods in SAP APO Supply Network Planning 38
2 Introduction: Models, Model Building and Optimization 44
2.1 An Important Warning on Modeling and Optimization 44
2.2 Mathematical Optimization 46
2.3 The Main Ingredients of Optimization Models 49
2.4 Classes of Problems in Mathematical Optimization 55
2.5 Implementing Models and Solving Optimization Problems 61
2.6 Optimization and SAP APO 62
3 Model Building in SAP APO Supply Network Planning 64
3.1 The Example Supply Chain Model 65
3.2 Supply Chain Model Master Data 74
4 Optimization in SAP APO 102
4.1 Recap of the Supply Chain Model 102
4.2 Optimizer Setup 103
4.3 The Planning Run 114
4.4 Some Observations 123
Detailed Case-Studies 126
5 Planning in Semiconductor Manufacturing 127
5.1 Semiconductor Manufacturing 127
5.2 Supply Chain Business Practices 130
5.3 The Semiconductor Case Study 137
6 Consumer Products 141
6.1 Supply Chain Challenges Characterizing the Consumer Products Industry 141
6.2 The Carlsberg Case 142
7 Customized Optimization Solutions for the Automotive and Chemical Industries 147
7.1 Automotive Case Study 147
7.2 Chemical Case Study 156
7.3 The Future 164
8 Operative Planning in the Process Industry 165
8.1 Problem Description 165
8.2 A Tailored MILP Model 168
8.3 The SAP APO View on this Problem 218
9 Case Studies – Interfacing Tailored Models to SAP APO 227
9.1 Developing Tailored Models 227
9.2 The ILOG Cartridge Concept 228
9.3 Production and Sales Planning in the Chemical Industry 259
Concluding Considerations - The Future 272
10 Summary, Visions and Perspective 273
10.1 What Can Be Learned from this Book? 273
10.2 A Summary of Experience in Optimization Projects 275
10.3 Further Developments in Real World Optimization 285
10.4 The Future of Optimization with SAP APO 289
Appendix 291
A The Hitchhiker’s Guide to SAP APO 292
A.1 SAP APO Components 292
A.2 Hierarchical Planning 293
B Mathematical Foundations of Optimization 296
B.1 Linear Programming 296
B.2 Mixed Integer Linear Programming 309
B.3 Multicriteria Optimization and Goal Programming 313
C Glossary 316
List of Figures 322
List of Tables 324
References 325
About the Authors 331
Index 333