SNP Heuristics Algorithm

Dhanwantry, Kalyan R
SAP Systems Analyst / IT SNC PS
WW 11.2 2013

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APO-Planning Process / Flow

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APO-Supply Network Planning Methods

APO SNP provides programming algorithms to solve supply planning situations.

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APO-Supply Network Planning Methods

Differences between 3 Solvers:

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APO-Supply Network Planning Methods

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APO-Supply Network Planning Methods

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APO-Supply Network Planning Methods

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APO-Supply Network Planning Methods

APO SNP provides programming algorithms to solve supply planning situations.

1. Run Low-level codes

2. Run Heuristics
3. Run Capacity Leveling
4. Run Deployment
5. Run TLB (Optional)

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Factors considered in Processing :
1. Product Location selection profiles
2. Low-level code of the product/location combinations
3. Valid PPMs
4. Valid T-Lanes
5. Quota arrangements or procurement priorities
6. Lead time & Calendars
7. Lot size profiles and component availability
8. SNP Demand/ Supply profiles
9. Demand Profile

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Three different Heuristics methods
Location Heuristics:
The system plans the specified products at the specified location.

Network Heuristics:
The system plans the specified products at all specified locations in the network to
which the selected product is assigned.

Multi-level Heuristics:
The system plans all the products at all locations, whether they are finished,
intermediary, or purchased goods from highest level down to the lowest BOM
level.

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Location Heuristics

The planning is performed at a single specified location only.

The system plans the specified products in the specified location and allows
selecting the part of the model to be planned.

It also propagates the requirements to sources at only one level.

This is the most simple way to test or run the SNP Heuristics and to see it basic
behavior.

The system explodes the dependent demand for one BOM level at the
production location in the planning direction.

However, dependent demand

throughout the supply chain

The result is generation of stock transport requisitions, planned orders and

purchase requisitions.

Transaction Code: /SAPAPO/SNP01and select

SE38 Program for background run: /SAPAPO/RSNPSRP1and select

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is

neither

fulfilled

nor

fully

propagated

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APO-Supply Network Planning Methods

Location Heuristics Log showing 1 product planned at 1 Location.

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APO-Supply Network Planning Methods

Network Heuristics

The planning is performed for complete network locations.

The system plans the specified products at all specified locations in the network
which the selected product is assigned to.

If you have product X in locations L1, L2 and L3, the Network Heuristics plans
for product X at L1, at L2 and at L3 locations).

The system explodes the dependent demand for one BOM level at the first
location encountered in the planning direction.

However, dependent demand is neither satisfied nor further propagated

through the supply chain as in the Multi-Level Heuristics.

The system uses this information only to generate stock transport requisitions,
planned orders and purchase requisitions.

Transaction Code: /SAPAPO/SNP01and select

SE38 Program for background run: /SAPAPO/RSNPSRP1and select

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Network Heuristics Log showing multiple product planned at multiple
Location.

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Multi-level Heuristics

The system plans for all products specified at all locations, whether they are
finished, intermediary, or purchased goods from the highest level down to the
lowest BOM level.

The planning is performed is performed for complete network locations. In other

words system plans for all products specified including all dependent demand.

MLH is performed across all locations to which the selected products are
assigned, as well as across all locations to which dependent products are
assigned.

For example if product X needs Y to be produced and Y is made of Z; Multilevel Heuristics plans all 3 products when selecting X only

For MLH the SNP LLC (Low-level code) determination is very important as it
determines the level of the products.

Transaction Code: /SAPAPO/SNP01and select

SE38 Program for background run: /SAPAPO/RSNPSRP1and select

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MLH Log showing even the dependent demand being planned :

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SNP Low level code ( LLC)

The low-level code specifies the bill of material (BOM) level and supply chain location
at which a location product is situated.

The SNP heuristic needs this information to be able to determine the correct planning
sequence for the location products, thus ensuring that demands are fulfilled correctly.
It is important to maintain the planning sequence if you are running the SNP heuristic
for only a part of your supply chain model.

The system uses the products position in the bill of material and the location assigned
to the product to determine the low-level code.

The highest low-level code (a code of 0) is attributed to the finished product assigned
to the final location in the supply chain (a customer location for instance). The second
highest low-level code (1) is attributed to the finished product at the penultimate
location (a distribution center for instance), and so on. The system assigns low-level
codes to the individual components at the different BOM levels in the same.

The SNP heuristic then plans the location products in the low-level code sequence, first
planning the location product with low-level code 0 and so on

Transaction code: /SAPAPO/SNPLLC

SE38 Program for background processing: /SAPAPO/RSNPLLCSET

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Low-level code settings when the complete Model is selected and a
specific Product / Location:

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Low-level code Errors

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SNP Capacity Leveling

The capacity leveling function is an extension of heuristic-based planning in Supply

Network Planning (SNP).

The SNP heuristic run is an infinite form of planning that does not take into account
capacities and can thus cause resource overloads.

SNP capacity leveling function is to clear resource overloads by moving orders or partial
order quantities into previous or subsequent periods using forward or backward
scheduling.

SNP capacity leveling is used to level specific bottleneck resources. It is run locally on a
resource in a specified horizon, which means that dependencies with other resources are
ignored.

Leveling capacity for the entire supply chain would, in effect, be the same as performing
a new planning run and is not within the scope of this

Capacity leveling can be run in both interactive Supply Network Planning and in the
background. Interactive planning has the advantage that you can display the resource
load directly before and after leveling

Transaction code: /SAPAPO/SNP05

SE38 Program for background processing: /SAPAPO/RMSDCAP

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Capacity Leveling:

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To see the Result Log of Heuristics run:
Transaction code: /SAPAPO/SNPAPLOG

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SNP Heuristics Master Data settings :

Location /SAPAPO/LOC3

Location Type , Storage Resource, Handling Resource, Calendar (Shipping /

Production), ATD Groups & Time Zone

Product Master /SAPAPO/MAT1

Initial Screen profile: Lot size, Demand, SNP demand, SNP Supply, Deployment
& Base unit
Attributes: Gross Weight & Volume
UOM: Define a conversion from the volume unit into the base unit of measure
(based on the unit of measure of the planning area)
Lot Size: Procedure ( lot-for-lot, fixed lot size, etc) & Safety Stock method
SNP 2: SNP Production horizon & SNP Stock transfer horizon
Procurement: Procurement type & Planned Delivery Time (PDT)
GR/GI: Handling capacity consumption & Storage consumption

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SNP Heuristics Master Data settings :

Location /SAPAPO/LOC3

Location Type , Storage Resource, Handling Resource, Calendar (Shipping /

Production), ATD Groups & Time Zone

Product Master /SAPAPO/MAT1

Initial Screen profile: Lot size, Demand, SNP demand, SNP Supply, Deployment
& Base unit
Attributes: Gross Weight & Volume
UOM: Define a conversion from the volume unit into the base unit of measure
(based on the unit of measure of the planning area)
Lot Size: Procedure ( lot-for-lot, fixed lot size, etc) & Safety Stock method
SNP 2: SNP Production horizon & SNP Stock transfer horizon
Procurement: Procurement type & Planned Delivery Time (PDT)
GR/GI: Handling capacity consumption & Storage consumption

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Thank You