Académique Documents
Professionnel Documents
Culture Documents
Gnther
H.
Dept. of Production Management
Dept
Technical University of Berlin
Outline
Introduction: The concept of SCM and APS
APS modules
Strategic Network Design
Demand
Pl
Planning
i
Supply Network Planning
External
Procurement
Production
Planning /
Detailed
Scheduling
Transportation
Planning /
Vehicle
Scheduling
Order
Fulfilment
ATP / CTP
Lesson 1
There is an ongoing
g g
change of paradigm
from ERP / MRP
towards APS.
1970s
Material requirements
q
planning
p
g (MRP)
(
)
Bill of material files
Calculation of net requirements
1980s
1990s
Integrated systems
CIM: Integration of manufacturing
ERP systems covering the whole enterprise
2000s
Lesson 2
SCM needs
d
sophisticated
planning
l
i systems.
t
Change of view
Holistic view
Definition
(customer order or forecast)
Customers,
distribution centres
Transportation order
Transporters
Production order
Manufacturing
stages
Replenishment order
Tiers of
suppliers
Demand element
A supply chain
consists of all parties
involved, directly or
indirectly, in fulfilling
a customer request.
the supply chain
includes all functions
involved in receiving
and filling a customer
request.
(Chopra and Meindl, 2004)
Lesson 3
Production
Distribution
Sales
Hierarchical planning
e.g. APS from SAP, i2 technologies,
Manugistics, Oracle, Aspen Tech
Definition of the
objectives
Forecasting future
developments
Feasible
alternatives
Selection of
solution
(Fleischmann et al. 2002)
long-term
mid-term
short-term
Production
Distribution
Sales
External
Procurement
Production
Planning /
Detailed
Scheduling
Transportation
Planning /
Vehicle
Scheduling
Demand
Planning
Order
Fulfilment
ATP / CTP
M1
M2
Customer
orders
Material
requirements
q
M3
Capacity
requirements
Routing
A2
A1
A4
A3
Scheduling
Lesson 4
Forgett BOMs
F
BOM
and routings.
L
Learn
PPM
PPM.
Production-process-model
Operation:
Component C
Operation:
Sub-assembly
Sub
assembly S
Operation:
Product P
mat. M1
res. c
M1
act. P1
act. C1
M2
act. S1
mat. M3
res a
res.
act. P3
mat. M2
comp C
comp.
res. b
act. P2
res. d
res
sub-a. S
res. e
res f
res.
M3
C
M3
M2
M1
Demand planning
Transportation planning /
vehicle scheduling
Order fulfilment
and ATP / CTP
Production planning /
detailed scheduling
External
procurement
The APS planning cycle represents the logical order of planning tasks.
tasks
Planning tasks differ by the frequency by which they are called up.
Outline
Introduction: The concept of SCM and APS
APS modules
St t i network
t
k design
d i
Strategic
Supply network planning
Demand planning
External procurement
Production Planning / Detailed Scheduling
T
Transportation
t ti Planning
Pl
i / Vehicle
V hi l S
Scheduling
h d li
Order Fulfilment and ATP / CTP
Lesson 5
Strategic
St
t i network
t
k design
d i iis
a powerful, but the least
utilized
tili d module
d l off APS
APS.
Decisions
Number of plants and DCs
Locations and capacities
Assignment of products to plants
Assignment of locations to each other
e.g. customers to DCs
Determination of transportation links
Mathematical methods
He ristics MILP
Heuristics,
MILP, Cl
Clustering
stering techniq
techniques
es
high
long
short
high
low
high
low
Planning frequency
Planning horizon
D
Degree
off aggregation
ti
Management level
Supplier
Supplier
Plant
Customer
Distribution
centre
Lesson 6
Forecasting is essential at
all planning levels. Pure
forecasts can cause ampliampli
fication of demand.
Demand planning
Use of forecast
Strategic level: design of the supply network
Operational level: production, distribution,
and procurement decisions
Demand
Planning
Demand planning
Most essential in make-to-stock environment,
e.g. in the consumer goods industry
Collaborative forecasting between partners in the supply chain
Mathematical methods
Statistical forecasting techniques
Tools for incorporating human judgement
Lesson 7
Decisions
Allocation of production quantities between plants
Supply from the plants to DCs and from the DCs to customers
Smoothing out seasonal cycles in demand
Consideration of production, transportation, and handling capacities
as hard constraints
Consideration of demand,
demand due
d e dates,
dates and safety
safet stocks
as soft constraints
day
year
day
high
low
high
low
Planning frequency
Planning horizon
D
Degree
off aggregation
ti
Management level
S t
Set-up
off the
th network
t
k configuration
fi
ti
Integration of suppliers and transporters
Assign and modify master data, e.g. product portfolio and capacities,
costs, safety stocks, demand figures, modes of transportation etc
Lesson 8
Production capacity
p
y at p
plants
a pi x pijt PCit
pP (i ) j J (i )
p P (i )
p x pijt +
p P (i ) iI ( j )
p z pjkt HC j
p P (i ) k K ( j )
j J (k )
pP jJ tT
pP jJ kK ( j ) tT
p P (i ) i I j J (i ) tT
Lesson 9
Mathematical methods
Genetic algorithms
Constraint programming
Rules and heuristics
Application specific
algorithms
Production
Planning /
Detailed
S h d li
Scheduling
day
year
day
high
low
high
low
Planning frequency
Planning horizon
D
Degree
off aggregation
ti
Management level
Final Product
Box
Dye Cream
Dispersion
Shampoo
Cream Liquid
Dispersion
Li id
Liquid
Shampoo
Li id
Liquid
Dispersion
Chemicals
Shampoo
Chemicals
Bottle
Tube
Cream
Processing
line
Chemicals
cream
Tube
Processing line
dispersion
Processing line
shampoo
Filling shampoo
Lesson 10
Additional features
of SAP APO 3.1
Characteristics based planning
Shelf-life consideration
Model mix planning
Customer orders
20
10
10 20
10 40
40
-10
60
50
Deficit
30
T
Transportation
t ti orders
d
100
Surplus
30
Production orders
20
50
50
50
30
50
+20
Surplus
50
Purchase orders
80
30
20
80
50
+10
Lesson 11
Procurement requires a
high degree of collaboration
between partners in the
supply chain.
External procurement
Decisions
Determination of the purchase quantity
Selection of the supplier
Mathematical methods
Rule-based and heuristic
procedures
d
External
Procurement
MILP
Lesson 12
Mathematical methods
Rule-based ATP
Batch mode ATP (MILP)
Order
Fulfilment
ATP / CTP
Yes
No
Earliest date available for P1, 1 T2
EXC1 satisfied?
Yes
No
Yes
Original
order
d
Customer order /
end item
Same product/
alternative location
Alternative product/
Alternative
alternative location
product
Production
Change of location
Alternative component
Lesson 13
Customer satisfaction
finally depends on the
timelyy execution of
transportation activities.
Mathematical methods
Heuristics
Local Search
Transportation
Planning /
Vehicle
Scheduling
Concluding remarks
Huge cost savings can be gained through efficient use of APS.
APS have been adopted in many industries.
Collaboration between partners in the supply chain including
share of information and transparency of business processes
is seen as a major driver of SCM performance.
No global optimize SCM button provided by APS.
Expertise needed.
Optimization models often require large computational effort.
APS, especially at the detailed scheduling level, do not
sufficiently consider application specific features.
APS are most successful for intra
intra-company
company supply chains
with centralized logistics control.