SUPPLY PLANNING LEADERSHIP EXCHANGEPRESENTS:                   The web event will begin momentarily with your host:August ...
2       Does your SNP Plan position you for success?       What is SNP?       Thinking about SNP Engine Selection     ...
Demand Management                          S&OP                Supply Planning                                            ...
4               Road Map to Supply Chain Optimization                                                       Business      ...
5    How far along are you in your Supply Chain               Optimization journey?        Make your selection on the righ...
Supply Network Planning                                 DemandU                                Planning                   ...
9         Quality of data in and out of the                SNP Planning Engine      Make your selection on the right side ...
10        User Input              10                                     Simulation                   Optimizer           ...
11     Heuristics     Plans with a Macro approach stepping through the Supply     Network           Groups all demands fo...
12 Capable to Match (CTM) Matches demand to available supply via production capacity and transportation capability checks ...
13     Optimizer     Plans at the lowest level of detail           Optimizer offers cost-based planning           Search...
“Smart” logic that creates the requirements plan across the supplyHeuristics                chain model                Cos...
15                                                                             Sprint                                     ...
16     Industry Champions     • Hi-Tech     • CPG                          Industry Champions                          • P...
SNP Solver Comparison
18     Strengths                                             Considerations        Optimizer:                            ...
Join us on LinkedIn: Supply Planning Leadership ExchangeFollow us on Twitter: @Plan4Demand            Complete our survey ...
Supply Planning Leadership Exchange SAP APO SNP Solver Engine Selection
Supply Planning Leadership Exchange SAP APO SNP Solver Engine Selection
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Supply Planning Leadership Exchange SAP APO SNP Solver Engine Selection

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866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com

Supply Planning Leadership Exchange presents:
SAP APO SNP
Solver Selection


with Sharon Nelson, Managing Director

Heuristics vs. CTM vs. Optimizer?

This session will focus on the three solver engines available to choose from and help you understand when to use Heuristics, Capable to Match, and Optimizer. We’ll review strengths and considerations of each solver, how to navigate the maturity curve successfully, along with industry specific suggestions and useful migration strategies .

Check out this webinar on-demand at http://www.plan4demand.com/Video-SAP-SNP-Engine-Solver-Evolution

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Supply Planning Leadership Exchange SAP APO SNP Solver Engine Selection

  1. 1. SUPPLY PLANNING LEADERSHIP EXCHANGEPRESENTS: The web event will begin momentarily with your host:August 2nd, 2012 plan4demand
  2. 2. 2  Does your SNP Plan position you for success?  What is SNP?  Thinking about SNP Engine Selection  Summary of Options for Consideration
  3. 3. Demand Management S&OP Supply Planning Capacity history Supply Demand (Constrained (Unconstrained Inventory New Product product market demand) availability) Transportation PLMSAP/APO/DP Supportable SAP/APO/SNP DemandSAP/ECC Allocation Supportable Plan Orders Order Fulfillment Shipments Logistics & Fulfillment Planning
  4. 4. 4 Road Map to Supply Chain Optimization Business Master Data Solver Process Plan for Robust Standalone Reporting & Road Map Governance to SNP in Place Strategy Selection Transform Role Technical Training Alerts Operational Decision ation Changes Environment Environment Strategy Decisions Change Management Many Places to Stumble Neglect 1 & Progress Slows
  5. 5. 5 How far along are you in your Supply Chain Optimization journey? Make your selection on the right side of your screen Select all that apply A. Roadmap to SNP B. Operational Governance Body C. Operational Master Data Strategy D. Reporting and Alert Strategy
  6. 6. Supply Network Planning DemandU Planning CN Unconstrained Plan OC NO Integration SN Transfer Transfer TS Optimize Plan RT AR IA N Supplier Manufacturing DistributionI EN Lead Times Inventory Resource Capacity Storage Capacity DED Supply Network Planning PlanPlan Planning Horizon for Review
  7. 7. 9 Quality of data in and out of the SNP Planning Engine Make your selection on the right side of your screen 1. Is the demand data feeding SNP reliable? 2. Do you feed your SNP Plan to a shop floor planning solution? 3. Do you feed your SNP Plan back to Demand for further analysis? 4. Schedule adherence to the SNP Plan is high?
  8. 8. 10 User Input 10 Simulation Optimizer Output Lot size, rounding value Process Logic Multidimensional binary Total Cost Unit Storage cost or golden section search Material flow Optimal Storage Run conditions Internal Space or Change in Storage Capacities Capabilities Return product Number of time periods location Logic Disposable parts Number of compatibles External Storage used Test for improvements Repairable parts Number of components when necessary & cost New parts efficient Results used as Starting Finished parts External/Internal or conditions in next iteration Remanufactured product both Calculation of total cost Cost breakdown Demand rates & performance Repeated iterative Internal Storage cost Yield measures process until improvement Reconfigured cost External Storage cost Control We Can Fine Tune Space Optimization
  9. 9. 11 Heuristics Plans with a Macro approach stepping through the Supply Network  Groups all demands for a given product at a location into one demand bucket  Processes each planning location sequentially to determine sourcing requirements  Infinite capacity over the medium to End user Effort long-term horizon High Medium Low High Set up Effort Medium X Low
  10. 10. 12 Capable to Match (CTM) Matches demand to available supply via production capacity and transportation capability checks  Executes a multi-level, finite planning of the demands in your supply chain using prioritization  Considers constraints on production capacities, transportation capacities, storage capacities  Takes into account alternative production locations and sources of supply (locations, production End user Effort High Medium Low process models, and external Set up Effort High procurement relationships) Medium X Low
  11. 11. 13 Optimizer Plans at the lowest level of detail  Optimizer offers cost-based planning  Searches through all feasible plans in an attempt to find the most total cost-effective solution  Many different methods of optimization  Linear  Discrete  Aggregated Plan – Vertical / Horizontal End user Effort High Medium Low  Prioritization High X  Incremental Setup / Data Effort Medium  Decomposition Low
  12. 12. “Smart” logic that creates the requirements plan across the supplyHeuristics chain model Cost-based optimizer that takes cross-plant resource and materialSNP Optimizer availability into accountOptimal Cost A configuration of the optimizer where actual costs are modeled,Configuration including the penalty for non-delivery costOptimal A configuration of the optimizer where the non-delivery cost is set toService Level a very large amount, storage costs are modeled and other costs areConfiguration small in comparison Capable-to-Match:CTM An order-based planning method that takes production capacity into account; uses pegging
  13. 13. 15 Sprint Run Solver Capabilities Optimizer • Best in Class Capable to Match • High customization Jog • Feasible solution • Short Product Lifecycles / Shelf life • Matches demand to • Thin Margins supply via production Heuristics and transportation • High demand volatility • Un-constrained capability • MRP Like • Capacity leveling
  14. 14. 16 Industry Champions • Hi-Tech • CPG Industry Champions • Process Industry • Aerospace
  15. 15. SNP Solver Comparison
  16. 16. 18 Strengths Considerations  Optimizer:  Optimizer:  Fully Mathematical Model based on LP  Very time consuming and CPU intensive techniques using cost and time variables for  Analyzing of results is tedious Production, Storage, Transportation and Procurement  Extremely useful for bottle neck optimization  CTM:  CTM:  Sequential approach to allocation  Excellent solver resource constrained and prioritization  Variant configuration products have challenges  Heuristic:  Heuristic:  Excellent solver for entire network (i.e. MRP  Less precision like) unconstrained modeling  Calculates discrete node and requires  Exceptionally constructive for new Multi step planning process implementation to optimize entire network  Need to do subsequent resource leveling using constraint modeling
  17. 17. Join us on LinkedIn: Supply Planning Leadership ExchangeFollow us on Twitter: @Plan4Demand Complete our survey & receive a $5 Starbucks Gift Card Upcoming Leadership Exchanges Save the Date Click Below to Register Now! August 22nd September 12thDemand Planning Leadership Exchange: S&OP Leadership Exchange: Developing a Demand S&OP Technology Classification Matrix A tool, or a strategy?

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