What is supply network planning

[Former Member]

Hi Experts,

Could you please explain me the Step by step for Supply network planning.

We will release the data(Final Forecast) from DP to SNP then what will happen?

Thanks in Advance.

Naga.

[former_member187488 · Accepted solution]

Hi Naga, when you release forecast from DP to SNP, only forecast orders will be created in liveCache, which will be the demands at SNP side. But at this time, nothing will happen in SNP. You'll need to use one or several of the below functionality to plan the released demands:

1)SNP heuristic - interactive run or in /sapapo/snp01

2)SNP optimizer - interactive run or in /sapapo/snpop

3)CTM - /sapapo/ctm

Optionaly, you can use SNP capacity leveling to balance the resource consumption (interactive run or in /sapapo/snp05)

By running the above planning functionality, purchase requistion (for external procurement products) and planning production order (for in-house production products) will be generated to fullfill the demands.

Planned orders generated by SNP could be further planned by PPDS when they go to PPDS horizon, or they can be transferred to ECC system for further planning or execution.

It is hard to explain any 'step by step' SNP functionality for you since it will be complicated when go into details. You should decide which functionality would you like to use, then go further inside of it.

[Former Member · Accepted solution]

Hi,

I want to know as per below way.

IN DP,we will take the sales history as input and we will use some forecast models and generate the stastical forecast,we add some adjustmets and make Final Forecast.

In the sameway how the things happen in SNP.

Thanks,

Naga.

[former_member187488 · Accepted solution]

Hi Naga, I think I have already replied to your questions in my above reply.

The input of SNP is the released forecasts and some other demands (as per business requrirement), then the SNP planning run will generated planned orders or purchase requisitions. If you use SNP planning book, you can run SNP heuristic or optimizer interactively, then the result will be displayd in key figure "distribution demand (planned)" or "production (planned)". But this is only the most basic usage.

If you cannot understand the above, I think you'll need to read through some documents first or take SAP APO training, because they're the most basic things in SNP.

What I want to say is, do not take SNP as the same or similar as DP. The concepts of them are mostly different. Refresh your mind first and get into SNP.

[ravi_malpani · Accepted solution]

In SNP,

Input: Major inputs are as follows

1. Forecast values from DP

2. Additional demand can be added (to the DP values) in SNP to calculate Net demand.

3. Actual Stock

4. Lot size method (Periodic / Lot for Lot / Fixed lot size etc)

5. Lot size quantity (Minimum, Maximum and Rounding value)

6. SNP Horizon

7. Safety stock requirements

8. Low level code

Process: It can be either Heuristics or CTM or Optimizer. Heuristics follows the basic MRP II logic. SNP Plans in buckets Eg. Days / Weeks / months. SNP Planning book has initial column followed by the remaning buckets in the planning horizon. It calcualtes Projected available stock (PAS) in initial bucket by netting actual stock against the demand in that bucket. From next bucket onwards, SNP targets to keep the PAS Zero or any positive value in each of the bucket.

CTM and Optimizer are advanced methods which consider additional constraints

Output: Receipts (Purchase Requisitions / Planned orders) are generated to match the desired PAS level

Eg. If your company has 3 level hierarchy of 1 production plant, 1 central warehouse and 2 regional warehouses and you are forecasting at  regional warehouse level. Then SNP heuristics will help you to propogate the net demand from regional warehouse to production plant via central warehouse.

Regards,

Ravi

[bkreddy]

Hi Naga,

Mr Ada LV has given answer to your question.I'm giving the brief overview of SNP cycle

DP forecast is the input to SNP.

1.Run Any of the SNP engine like heuristic or Optimizer or CTM by interactively or through back ground

2. Ren Deployment

3.Run TLB

My suggestion is go through SNP documents to understand in depth knowledge on the above concepts.

[Former Member]

Hi All,

Thanks for your reply.

Thanks,

Naga.