SAP SCM

The case study scenario is modeled using SAP s SAP SCM software package, the supply chain solution within the SAP Business Suite. The SAP SCM solution map in Figure 11.5 shows the complete scope of functionalities offered in the 2005 release. 

The capabilities offered within SAP SCM extend far beyond the scope of this chapter. The key functionalities we will describe in the following are highlighted in Figure 11.6, which is based on the generic supply chain planning matrix (Figure 11.2) introduced in Section 11.2.1. They are part of the SAP Advanced Planner and... 

Fig. TI.6 Supply chain planning matrix using SAP SCM terminology.

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

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],... 

SAP SCM, 12 Production Scheduler, Wassermann waySCS, AspenONE resp. Aspen MIMI and Axxom ORio -PI. 

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. 

The digitization of business processes in the 1990s has been the driving force behind the recent boost in globalizing operations. For the chemical industry, this has mostly meant process automation and integration by ERP and SCM software, which is dominated by SAP. According to IT research firm AMR, 60 percent of the application spending in 2004 was on ERP and SCM systems (Fig. 23.5) and 85 percent of this spend in chemical multinationals was on SAP systems (55 percent for the mid-tier market). 

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