SAP APO

Optimizer (SAP APO), which is the advanced planning component within the SAP SCM solution. For more information on SAP APO refer to [9,10]. 

In SAP APO, the master planning process is implemented in the Supply Network Planning (SNP) module. SNP offers a multitude of functionalities, not all of which can be described in the limited scope of this chapter. More details on the SNP module can be found, among others, in [10]. 

The short-term planning process is dealt with in the Production Planning and Detailed Scheduling module within SAP APO. PP/DS considers a horizon of two to three months. In contrast to SNP planning, there is no cross-location planning in PP/DS. 

The SNP optimizer is based on (mixed-integer) linear programming (MILP) techniques. For a general introduction into MILP we refer to [11], An SAP APO user has no access to the mathematical MILP model. Instead, the modeling is done in notions of master data of example products, recipes, resources and transportation lanes. Each master data object corresponds to a set of constraints in the mathematical model used in the optimizer. For example, the definition of a location-product in combination with the bucket definition is translated into inventory balance constraints for describing the development of the stock level over time. Additional location-product properties have further influence on the mathematical model, e.g., whether there is a maximum stock-level for a product or whether it has a finite shelf-life. For further information on the master data expressiveness of SAP SCM we refer to [9],... 

Bartsch, H. and Bickenbach, P. (2001) Supply Chain Management mit SAP APO, Galileo, Bonn. 

In the independence approach the planning functions are stripped from the old-fashioned ERP system and a modem complete APS system is added as a separate server system with an independent persistent data model and integrated by an interface (Fig. 12.2). Some users of the ERP system also use this separate APS system. This approach is supported, e.g., by the software products SAP APO resp. 

The implementation teams of the authors have in particular gathered experience with interfaces to the systems SAP R/3 and SAP APO. They have noted that the time to establish a stable interface is essential for the success of an APS project. The establishment of a first stable interface between ERP and APS system should be completed in not more than one week. 

Gunther HO, Grunow M, Neuhaus U (2006) Realizing block planning concepts in make-and-pack production using MILP modeling and SAP APO . International Journal of Production Research 44 (18-19) 3711-3726... 

A representative for this approach is the product APO resp. SAP SCM of SAP AG that is most often used in conjunction with the ERP system SAP R/3 resp. SAP ERP. 

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The global ATP capability of SAP s APO suite serves as a key component for supporting integrated supply chain decision support. Global ATP is a part... 

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