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What is demand planning

Demand planningis a module in APO which in essence is a statistical tool kit which are used for

Forecasting demand .

Any Forecast has three main features

Data source - SAP BiW(Demand planning links tightly with SAP Bi !

Processing - Statistical toolkit in Demand planning

Usable output - Demand planninggi"es #ultile"el $ #ulti tier Output at the same

time it also has alert monitor to raise flag $ gi"e warnings a%out

de"iation from Forecast

Demand planning can %e used for&'olla%orati"e #ultile"el Planning planninganage Product life cycle&Do 'ausal analysis&Forecast for new product demand

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DP: Demand planning:

se APO Demand Planning (DP! to create a forecast ofmarket demand for your company)s products. *hiscomponent allows you to take into consideration the manydifferent causal factors that affect demand. *he result ofAPO Demand Planning is the demand plan.

Demand Planning is a powerful and fle+i%le tool thatsupports the demand planning process in your company.ser-specific planning layouts and interacti"e planning%ooks ena%le you to integrate people from different

departments, and e"en different companies, into theforecasting process.

sing the DP li%rary of statistical forecasting and ad"ancedmacro techniues you can create forecasts %ased ondemand history as well as any num%er of causal factors,carry out predefined and self-defined tests on forecast

models and forecast results, and adopt a consensus-%asedapproach to reconcile the demand plans of differentdepartments.

*o add marketing intelligence and make managementadustments, you use promotions and forecast o"errides.*he seamless integration with APO Supply /etwork

Planning supports an efficient S$OP process.

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SNP: Supply network planning:

APO Supply Network Planning integrates purchasing, manufacturing, distribution, andtransportation so that comprehensive tactical planning and sourcing decisions can besimulated and implemented on the basis of a single, global consistent model.

Supply Network Planning uses advanced optimization techniues, based on constraintsand penalties, to plan product !ow along the supply chain. "he result is optimal

purchasing, production, and distribution decisions# reduced order ful$llment times andinventory levels# and improved customer service.

Starting from a demand plan, Supply Network Planning determines a permissible short%

to medium%term plan for ful$lling the estimated sales volumes. "his plan covers both theuantities that must be transported between two locations &for e'ample, distributioncenter to customer or production plant to distribution center(, and the uantities to beproduced and procured. )hen making a recommendation, Supply Network Planningcompares all logistical activities to the available capacity.

"he *eployment function determines how and when inventory should be deployed to

distribution centers, customers, and vendor%managed inventory accounts. +t producesoptimized distribution plans based on constraints &such as transportation capacities( andbusiness rules &such as minimum cost approach, or replenishment strategies(.

"he "ransport oad -uilder &"-( function ma'imizes transport capacities by optimizingload building.

+n addition, the seamless integration with APO *emand Planning supports an ecientS/OP process.

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PPDS: Production planning & Detailed Scheduling:

"he component Production Planning and *etailed Scheduling &PP0*S( enables you toplan multi%site production while simultaneously taking into account product availablilityand capacity.

PP0*S is designed to plan critical products, for e'ample, with long replenishment leadtimes or that are produced on bottleneck resources.

PP0*S supports you in achieving a feasible production schedule with1

2educed lead times and increased due%date performance, which in turn leads toa higher degree of customer satisfaction.

+ncreased throughput of products based on better resource coordination.

2educed inventory costs because the work in process inventory is reduced as aresult of better coordination of product release.

Production Planning and *etailed Scheduling is used for short%term planning.

Products can be scheduled within the accuracy of a second, while considering seuenceconstraints as well as resource capacity.

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GATP: Global available to promise:

+ncreasingly, companies operating worldwide are forced to globalize availableinformation in order to conduct business eciently. Speci$cally, this means that

information has to be made available across system boundaries as uickly as possible toprovide optimized decision support.

3lobal A"P can be used in heterogeneous system landscapes to provide necessaryinformation as uickly as possible.

3lobal A"P is one of the central methods of APO that utilizes live4ache, a technology inwhich data is stored in the form of time series. "he data is stored in live4ache in theform of time series.

-ackorder processing in APO ful$ls a basic reuest to Supply 5anagement that consists

of changing con$rmed uantities and dates in the framework of the A"P check.-ackorder processing is essentially set to process reuirements entered, and to diagnoseand cancel backorder situations.

)hen entering sales orders, you can only con$rm the delivery of the goods on thedelivery date if they are available for all processing activities preceding the delivery.

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