Index

AATP (allocated ATP), 166, 348 aggregation, 75, 154 alert monitor, 214, 300, 303 allocation, 245, 247 allocation rule - fixed split, 170 - per committed, 170 - rank based, 169 alternative-generating algorithm, 117 alternative-selecting algorithm, 117 anticipation, 144 APO PP IDS (Production Planning

and Detailed Scheduling), 305 - modelling philosophy, 308 - modelling technique, 307 - planning method, 309 - product master data, 308 APS (Advanced Planning System), 18,

74 - assessment, 267 - enabler, 242, 256, 257, 342 - implementation, 268, see APS

implementation project - industry focus, 262 - integration, 215, 269, 350 - license fees, 265 - number of installations, 263 - post-implementation, 271 - prototype, 267 - release change, 271 - selection, 261 - super-user, 272 - support, 271, 272 - system administration, 272 - vendor, 262, 265 APS implementation project - definition phase, 241, 266 - functional requirements, 266 - implementation costs, 265, 266 - implementation time, 266 - selection phase, 261 APS module - Collaborative Planning, 103, 223-237 - coordination of, 211-215

- Demand Fulfilment and ATP, 100, 161-174

- Demand Planning, 100, 123-141 - Distribution Planning, 100, 195-209 - interaction of, 212 - Master Planning, 100, 143-160 - Material Requirements Planning and

Purchasing, 101 - Production Planning, 100, 177-193 - Scheduling, 100, 177-193 - Strategic Network Planning, 100,

105-120 - structure, 99 - Transport Planning, 100, 195-209 ARIMA, 131, 298 ATP (available-to-promise), 80, 161,

163, 200, 347 - allocation planning, 171 - consumer goods industry, 164 - consumption, 173 - customer hierarchy, 168 - dimension, 172 - granularity, 164 - product dimension, 164 - retained, 170 - search rule, 172 - time buckets, 166

B2B (business-to-business), 15 B2C (business-to-consumer), 16 backorders, 135 batch production, 354 beer distribution game, 22 Benders decomposition, 116 best practice, 46, 50 BOM (bill-of-materials), 182 BOM explosion, 100 bottleneck, 80, 144, 147 Box-Jenkins-method, 131 Branch and Bound, 396 bullwhip effect, 21-24, 81, 255 business performance, 251

cannibalization, 298

420 Index

CDCM (Collaborative Development Chain Management), 224

change management, 285 channel research, 19 collaboration, 103, 225 - capacity, 229 - demand, 228 - inventory, 229 - materials and services, 226 - multi-tier, 230 - process, 231 - procurement, 229 - relationships, 230 - single-tier, 230 - transport, 230 collaborative forecast, 344 Collaborative Planning, 223-237 - software support, 235-237 computer assembly, 89 - capacity planning, 89 - coordination, 93 - distribution planning, 89 - integration, 93 - lot-sizing, 91 - machine scheduling, 91 - master production scheduling, 89 - sales planning, 90 - transport planning, 92 computer industry, 126, 335 - assembly process, 338 - business performance, 339 - component planning, 344 - product life cycle, 343 - product structure, 337 configure-to-order, 165, 337 consensus based forecasting, 228 constraint propagation, 412, 413 consumer goods industry, 82, 298, 353 - capacity planning, 82 - coordination, 85 - distribution planning, 82, 85 - forecasting, 84 - integration, 85 - lot-sizing, 84 - machine scheduling, 84 - master planning, 83 - master production scheduling, 82 - sales planning, 84

- seasonality, 82 - sequence dependent setup time, 84 continuous improvement, 258 continuous review system, 140 cooperation, 20 coordination, 9, 20 coordination of APS modules - Demand Fulfilment and ATP, 213 - Demand Planning, 213 - Distribution and Transport Planning,

214 - Master Planning, 213 - Production Planning and Scheduling,

213 - Strategic Network Planning, 212 CP (constraint programming), 400, 411 CPFR (Collaborative Planning,

Forecasting and Replenishment), 224 CPLEX, see ILOG CSP (constraint satisfaction problem),

411 CTP (capable-to-promise), 80, 165 customer service, 10, 353 customer service level, 247 cycle stock, 38-39, 197, 204, 366

data mining, 219 decoupling point, 11, 164 deliver-to-order, 164 Demand Fulfilment and ATP, 161-174 Demand Planning, 123-141, 244 - causal forecasting, 128 - collaborative forecasting, 124, 126,

127 - geographic dimension, 168 - judgmental forecast, 124, 132 - multi-dimensional forecast, 125 - rule-based forecasting, 134 - seasonality, 128, 130 - simulation, 124 - statistical forecasting, 124, 127 - trend, 127, 130 - what-if-analysis, 124 demand supply matching, 349 deployment, 205 disaggregation, 154 Distribution and Transport Planning,

195-209 dual instruction, 156

dual value, 159, 394 DW (Data Warehouse), 215, 235 - APS integration, 218

EAI (Enterprise Application Integra-tion), 219

- integration adapter, 220 - integration facade, 221 - integration mediator, 221 - integration messenger, 220 - process automator, 221 EDI (electronic data interchange), 15 enabler-KPI-value network, 257 ERP (enterprise resource planning), 73,

74, 100, 249, 254 every-day-Iow-price, 78 exponential smoothing, 129, 298, 381

financial measures, 251 flexibility funnel, 246 flow lines, 189 flow shop, 339 focal company, 14 food and beverages industry, 353 - demand planning, 357 - distribution planning, 357 - master planning, 358 - production planning, 357 - production scheduling, 359 - sequence dependent setup time, 354 - setup time, 354, 361 food industry, 127 forecast - accuracy, 34, 136, 246, 248, 249 - error, 125, 136 - netting, 346 forecasting, see Demand Planning - seasonal coefficient, 380 - seasonality and trend, 379 - Winters' method, see Winters'

method FP (Factory Planner), 327 - alternate resource, 333 - BOM (bill-of-materials), 332 - data files, 328 - model, 330 - modelling concept, 327-329 - routing data, 333 - spec files, 327

Index 421

frozen horizon, 147, 188, 193 frozen period, 73, 359, 368

GA (genetic algorithm), 295, 302, 403 gantt-chart, 186

heuristic, 73, 368, 403 hierarchical (production) planning, 25 hierarchical planning system, 74 House of SCM, 9 hybrid-flow-shop, 305

i2 Technologies, 293 - Active Data Warehouse, 341, 351 - adapter, 296, 351 - Collaboration Planner, 296, 341 - Constraint Anchored Optimization,

295 - Content, 295 - Customer Relationship Management,

296 - Demand Fulfillment, 341, 347, 351 - Demand Planner, 294, 323, 324, 341,

342 - Factory Planner, 293, 295, 321, 327,

341, 349 - Five.Two, 293-297 - High Availability, 352 - i2 Platform, 296 - ODS (Operational Data Storage),

296 - Optimal Scheduler, 295 - PRO (Product Relationship Object),

294, 341, 346 - RhythmLink, 324, 341, 351 - ROI (RHYTHM Optimization

Interface), 341, 351 - SDP (Strategy Driven Planning), 295 - Supplier Relationship Management,

296 - Supply Chain Management, 294 - Supply Chain Planner, 295, 321, 324,

341, 347 - Supply Chain Strategist, 294 - TradeMatrixLink, 270 - Transportation Modeler, Optimizer

and Manager, 295 ILOG, 302, 358 implementation

422 Index

- business case, 277, 280 - business plan, 284 - close phase, 288 - communication plan, 283 - contractors, 278 - execution and deployment phase, 287 - implementation plan, 281 - objectives, 277 - phases, 275 - project control, 278 - project definition phase, 275 - project management, 281 - project sponsor, 278 - project structure, 278 - scope, 277 - solution, 278 - solution design phase, 280 - solution details phase, 284 - team structure, 279 increinental planning, 186, 270 indicator, see KPI (key performance

indicator) - functions of, 30 - system of, 31 Integer Programming, 391 Integrated Supply Chain Benchmarking

Study, 52 integration, 9 - mode, 270 - of APS, 215 inventory analysis, 37 inventory in transit, 39-40 inventory level, 247

J. D. Edwards, 249, 254, 297 - Advanced Planning, 353 - Advanced Planning Agent, 299, 358,

368 - commodity, 360 - Demand Planning, 298 - Distributed Object Messaging

Architecture, 300 - Enterprise Planning, 297 - Integration and Data Flows, 299 - model building, 359 - OneWorld Xe Advanced Planning,

297-300 ~ Order Promising, 299

- Production & Distribution Planning, 298

- Production Scheduling, 298, 358, 359, 368, 369

- Production Scheduling Discrete, 298 - Production Scheduling Process, 298 - Strategic Network Optimization, 297,

353, 358, 359, 362, 363, 367-369 judgmental forecast, see Demand

Planning just-in-time, 78, 354

KDD (knowledge discovery in databases), 219

knowledge management system, 288 KPI (key performance indicator), 11,

33-36, 241, 242, 256, 369 - as-is value, 257 - asset turns, 35 - assets, 35 - calculation scheme, 31 - cash flow, 251 - costs, 35 - delivery performance, 33, 164 - forecast accuracy, 34, 339, 342 - inventory age, 35 - inventory turns, 35, 164, 339 - on time delivery, 34, 161, 163, 171,

247,339 - order fill rate, 34, 247 - order lead-time, 34, 161, 164, 247 - order promising lead-time, 171 - planning cycle time, 35 - production lead-time, 247 - profile, 257-258 - ROA (return on assets), 251 - ROI (return on investment), 31, 251 - rule scheme, 31 - service level, 33 - supply chain flexibility, 34 - supply chain responsiveness, 34 - target scheme, 31 - to-be value, 257 - value-added employee productivity,

36 - warranty costs, 36

lead-time offset, 192 life-cycle-management, 77, 138

linear regression, 130, 388 location-allocation, 117 logistics, 17 lost sales, 135 lot-sizing, 148, 184 lot-sizing stock, see cycle stock LP (Linear Programming), 73, 110,

150, 205, 295, 297, 298, 302, 361, 367,391

LSP (logistics service provider), 195

make-to-order, 165, 337, 355 make-to-stock, 80, 337, 355 management-by-exception, 214 Manugistics NetWORKS Demand, 369 Master Planning, 143-160, 162, 198 - data, 149 - decisions, 147 - model adjustment, 160 - model building, 150 - objectives, 148 - planning horizon, 146 - planning-profile, 153 - results, 149 master production scheduling, 79 mean absolute deviation, 136 mean absolute percentage error, 136 mean squared error, 136 metrics, 29, 50 MIP (Mixed Integer Programming),

106, 150, 297, 302, 361, 362, 391, 395 model,71 - forecasting, 71 - optimization, 71 - simulation, 71 moving average, 129 MRP (material requirements planning),

55, 74, 80 multi-echelon, 108 multi-objective decision problem, 72 multicommodity, 108

network flow model, 205 Numetrix, see J. D. Edwards

objective function, 71 OLAP (online analytical processing),

219, 294, 301

Index 423

OLTP (online transaction processing), 215

operations research, 18, 73 OPT,261 optimization - problem, 403 - stochastic, 106 Oracle, 324, 358, 368 order - initial promise, 246 - life cycle, 246 - management, 246 - matching, 355 - promising, 161, 171, 340 - promising (MRP logic), 162 - quoting, 161 order picking inventory, 42

penalty costs, 157, 367 performance measures, 29 periodic review system, 140 phase-in/phase-out, 138 piecewise linear approximation, 116 planning, 71 - event-oriented, 73 - horizon, 71, 99, 146 - interval, 177 - module, 74 - operational, 72 - scenario, 253 - strategic, 72 - tactical, 72 planning domain, 223 planning tasks - long-term, 76-78 - mid-term, 79--80 - short-term, 80--81 POS (point-of-sale), 24 postponement, 19, 245 PPM (Production Process Model), 182,

312 pre-built stock, see seasonal stock primal instruction, 156 priority rules, 184 process, 46 - activity, 46 - business process, 46 - core process, 46 - support process, 46

424 Index

- task, 46 process organization, 189 product - life cycle, 244 - management, 244 - quality, 247 production lot-sizing stock, see cycle

stock Production Planning and Scheduling,

177-193 - activity, 182 - location, 182 - model, 181 - objectives, 185 - operating instruction, 182 - operation, 182 - part, 182 - resource group, 191 - routing, 182, 184 production schedule, 177 production scheduling problem, 404 project - control and reporting, 281 - coordinator, 279 - functional and process team, 279 - management, 279 - members, 285 - organization, 279 - phase, 275 - plan, 282 - roadmap, 255 - team, 278, 285 - team leadership, 279

quarantine stock, 367

ratio-to-moving averages decomposi-tion,385

reference model, 46 regression analysis, 130 rolling horizon, 73

safety stock, 41-42, 79,80, 85, 123, 139, 149, 204, 330, 359

safety stock management, 347 sales - ATP consumption, 170 - central, 244 - forecast, 245

- regions, 244 SAP, 300 - live Cache, 303 - Alert Monitor, 303, 309 - APO (Advanced Planner and

Optimizer), 269, 300-304 - BAPI (Business Application

Programming Interface), 303 - Business Information Warehouse,

301,303 - CIF (Core Interface), 303 - Collaborative Planning, 303 - Data Warehouse, 301 - Demand Planning, 301 - Deployment and Transport Load

Builder, 302 - Global ATP, 302 - mySAP SCM, 301 - Network Design, 301 - Production Planning and Detailed

Scheduling, 302, 305 - Purchasing Workbench, 303 - R/3, 249, 254, 269, 350, 368 - Supply Chain Cockpit, 301, 303 - Supply Chain Engineer, 303 - Supply Network Planning, 302, 311 - Transportation Planning and Vehicle

Scheduling, 302 SCC (Supply-Chain Council), 45 SCM (Supply Chain Management), 19 - building blocks, 9-18 - definition, 9 - gains, 1 - project, 241 SCOR-model (Supply Chain Operations

Reference-model), 45 - application, 53 - best practice, 50 - deliver, 48 - levels, 46 - make, 48 - metrics, 45, 50 - plan, 48 - process category, 48 - process element, 49 - process term, 46 - process type, 47 - return, 48

- source, 48 - standard terminology, 46 - Supply Chain Scorecard, 53 SCP-Matrix (supply chain planning

matrix), 76, 99 seasonal stock, 40, 82, 144, 150, 369 selection of an APS, 262 semiconductor industry, 321 - facility planning, 324 - production process, 325 - production scheduling, 324 - wafer production, 325 - wafer sawing, 326 - wafer test, 326, 332 sequence dependent setup time, 191 service level, 33, 140 single sourcing, 116 software - component, 99, 101, 102 - module, 76, 99-102 sporadic demand, 135 steering committee, 14, 279 stock components, 37 Strategic Network Planning, 105-120,

198 supplier - contract, 246 - flexibility, 246 - forecast, 245 - lead-time, 245 supply chain, 7 - demand constrained, 167 - material constrained, 335 - potential analysis, 251 - process, 76, 99 - review, 242

Index 425

- supply constrained, 167 - type, 101, 355 - typology, see typology synthetic granulate industry, 305 - APO PP IDS model, 307 - extrusion process, 305 - production process, 305

theory of constraints, 261 time bucket, 146, 190, 358, 360 time-series-analysis, 127 time-to-market, 248 topography of a supply chain, 59 transfer price, 109 transit stock, 202, 366 Transport Planning, see Distribution

and Transport Planning transportation lot-sizing stock, 39 transshipment point, 195 typology, 54 - distribution type, 57 - functional attribute, 55 - integration and coordination, 60 - procurement type, 55 - production type, 57 - sales type, 58 - structural attribute, 59

value driven APS implementation, 256 vehicle loading, 207 vehicle scheduling, 200, 207 VMI (vendor managed inventory), 65,

78,229,302

Winters' method, 130, 138, 381 - seasonal coefficient, 130, 138 WIP (work-in-process), 40-41, 247

About Contributors

Prof. Dr. Bernhard Fleischmann holds a chair for Production and Logistics at the University of Augsburg. 1978-1991 he was a professor of Operations Research at the University of Hamburg. 1971-1978 he worked in the Op­erations Planning department of Unilever Germany. His research interests include the development and application of systems for production planning, transportation and distribution planning and inventory management. He can be contacted at (bernhard.fleischmann@wiso.uni-augsburg.de).

Prof. Marc Goetschalckx is Associate Professor in the School of Industrial and Systems Engineering of the Georgia Institute of Technology. His research interests are in the areas of analysis and design of material flow networks, ranging from the design of global supply chains to the dispatching of vehi­cles to pick orders in a warehouse. He has written numerous articles, is a frequent speaker at international meetings and short courses, consults, and has developed decision support software in these areas. He can be contacted at (www.logisticsCAD.com) or (marc.goetschalckx@isye.gatech.edu).

Dr. Christoph Kilger is member of the executive board of j & m Manage­ment Consulting AG, Mannheim, and an assistant professor at the Univer­sity Mannheim in the area of Supply Chain Management. From 1996-1999 he worked as project manager with KPMG Consulting. Christoph heads the Supply Chain Management and electronic business practice of j & m. He has in-depth experience in supply chain managment and eBusiness from many industry projects. Christoph holds a PhD in computer science from the Uni­versity of Karlsruhe. He can be contacted at (christoph.kilger@jnm.de).

Dr. Robert Klein is a research assistant at Darmstadt University of Tech­nology where he received a doctoral degree in business administration in 1999. He has published many articles on quantitative methods and their application to production and logistics in international journals, like Inter­national Journal of Production Research, European Journal of Operational Research, and INFORMS Journal on Computing. He can be contacted at (rklein@bwl.tu-darmstadt.de).

Dr. Herbert Meyr has been working at the department of Production and Logistics at the University of Augsburg since 1994. After finishing his PhD thesis about "Simultaneous Lotsizing and Scheduling for Continuous Production Lines" in 1999 he changed his research interest to model building and integration aspects of supply chain planning. He can be contacted at (herbert.meyr@wiso.uni-augsburg.de).

428 About Contributors

Boris Reuter is managing director of aconis GmbH, Darmstadt. He is re­sponsible for the competence center Optimization and Integration. Since his graduation in business administration and management 1996 he was involved in the analysis of supply chains, the development of optimization algorithms, the customizing of APS and the implementation of collaborative planning in the process industry. Moreover, he works on his PhD thesis at the depart­ment of operations and materials management at Darmstadt University of Technology. He can be contacted at (b.reuter@aconis.com).

Marco Richter is consultant at aconis GmbH, Darmstadt, a company spe­cialized in the field of supply chain management solutions and optimizing logistic processes. He studied business administration and engineering. Since graduation from Darmstadt University of Technology, he is involved in con­sulting projects dealing with SAP APO and is specialized in the PP IDS module. He can be contacted at (m.richter@aconis.com).

Jens Rohde works on his PhD thesis at the department of Operations and Materials Management at Darmstadt University of Technology. His research domain is the anticipation of short-term production and distribution plan­ning decisions in mid-term master plannig to provide more accurate targets. Since his graduation in business administration and computer science in 1999 he also was involved in projects concerning analysis of supply chains and im­plementation of APS. He can be contacted at (rohdej@bwl.tu-darmstadt.de).

Lorenz Schneeweiss is working for j & m Management Consulting, Mann­heim, as senior consultant in the field of Supply Chain Management and plan­ning processes. He joined j & m Management Consulting in January 2001 and is responsible for the management, design and implementation of SCM and demand fulfilment solutions. Before, since 1999, he worked for KPMG Con­sulting in the SCM group on a large implementation project in the high tech industry. He studied business administration, management and engineering at Darmstadt University of Technology and specialized in production and material management. He can be contacted at (lorenz.schneeweiss@jnm.de).

Prof. Dr. Hartmut Stadtler is professor of Business Administration at Darmstadt University of Technology since 1990. From 1987-1990 he was em­ployed as a consultant in the field of production management. He has pub­lished numerous articles about operations and materials management in in­ternational journals like International Journal of Production Research, Man­agement Science', and Production and Operations Management. He can be contacted at (stadtler@bwl.tu-darmstadt.de).

About Contributors 429

Volker Stockrahm is managing director of aconis GmbH, Darmstadt. He is responsible for the competence center Supply Chain Management and Op­timization. Since his graduation in business administration and management 1996 he was involved in many development and implementation projects for optimization and APS projects in the process industry. Moreover, he works on his PhD thesis at the department of operations and materials man­agement at Darmstadt University of Technology. He can be contacted at (v.stockrahm@aconis.com).

Christopher Surie is currently working as assistant at the department of Operations and Materials Management at Darmstadt University of Technol­ogy, Germany. He studied industrial engineering at Darmstadt University of Technology and graduated in 2000. In addition to Supply Chain Manage­ment where his focus is on Production Planning and Scheduling, his areas of interest include lot-sizing and scheduling algorithms. He can be contacted at (suerie@ bw 1. tu-darmstadt .de) .

Michael Wagner works on his PhD thesis at the department of Production and Logistics at the University of Augsburg. His research concentrates on the integration of production and distribution planning. Since the completion of his study of business administration in 1998 he also was involved in projects concerning inventory management and implementation of APS. He can be contacted at (michael. wagner@wiso.uni-augsburg.de).

Dr. Ulrich Wetterauer is a senior consultant at j & m Management Con­sulting, Manheim. From April 1998-May 2000, he was a consultant at KPMG Consulting. He worked as a technical implementor, solution architect, and project manager in a large, international APS implementation project in the high tech industry. He holds a PhD in physical chemistry from the University of Heidelberg. He can be contacted at (ulrich.wetterauer@jnm.de).

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