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Enterprise Systems Optimization Spring, 2012. SCM Overview. APO Core Interface (CIF). Common Supply Chain Processes. Common Time Horizons for SCM Processes. Linear Programming (LP). Five common types of LP problems. Five common types of LP problems. Define the objective
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Define the objective • Define the decision variables • Write the mathematical function for the objective (objective function) • Write a one- or two-word description of each constraints • Write the right-hand side (RHS) of each constraint, including the unit of measure. • Write<=, =, or >= for each equation • Write all the decision variables on the left-hand side of each constraints • Write the coefficient for each decision variable in each constraint. Steps in Formulating LP Problems
SAP Business Suite SAP NetWeaver SAP PLM SAP ECC SAP SRM SAP CRM SAP SCM
SAP SCM Functionality THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal
SAP SCM Modules THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal
Alternative Scenario Base Scenario Two planning Scenarios for SAP SCM
Tasks • Identify sources for finished products • Plan and consider safety levels in any location • Distribute production over plants • Choose production resources in plants • Explode bill of materials in plants • Identify sources for supply of raw materials and components • Outputs • Purchase requisitions • Stock transport purchase requisition • Planned production orders Supply Planning Tasks and Output for SCM
SCM Sample: US-DC2 DE-DC2 US-Customers DE-Customer US-DC1 DE-DC1 US-Vendors DE-Plant DE-Vendor • USA: • 2 vendors • 1 plant • 2 DCs • 2 customers • Germany: • 1 vendors • 1 plant • 2 DCs • 1 customers Author:
One plant (DL) • Two DC’s (CA and FL) • Two Vendors (NY and MI) • Two Customers (WA and MS) North American Supply Chain