APO SNP optimizer

Companies in need of an optimized plan for long / midterm on several locations run the APO SNP optimizer. A plan is created by planning constraints and is optimized by costs. Constraints and costs have a different usage based on industry and customer. The plan may be executed on different bucket detail (monthly / weekly / daily etc.) The level is based on customer requirements.

SNP constraints overview

 

The SNP optimizer uses SNP PDS (Production Data Structure- routing / recipe and BOM connected by production version). Constraints and costs can be differentiated from PP/DS (Production Planning/ Detail Scheduling) planning by SNP PDS. Buckets are defined by constraints of long / medium-term planning. The plan can be executed on simulation versions to work on simulative planning scenarios. APO is located on a separate system in order to perform tasks of planning. Simulative planning runs and dummy master data can be modelled easily on the separated system.  

The SNP optimizer is integrated with other SAP solutions by SAP standard. Some of the important integrations are:

  • Master data / transaction data (sales orders, production orders, plant maintenance orders etc.) 
  • Integration with SAP ERP, forecast integration with Demand planning and Production planning integration with PP/DS. 
  • Stock integration is considered by the SNP optimizer planning.

The cost of the SNP optimizer can be modelled as a fictional cost. Another option is to use real business costs. The selection of the proper cost model is based on customer requirements. The correct cost model selection directly affects the supply chain planning strategy. Sales prices, production costs, transportation costs and procurement cost are some of the important costs of the SNP optimizer. The SNP optimizer can be executed with cost minimization or profit maximization. The profit maximization is useful if real business cost is used when modelling the SNP optimizer.