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Short text

Incremental Optimization (Enhanced)

Use

In optimization-based planning in Supply Network Planning (SNP), you have the option of planning only a part of the model or planning on the basis of an already existing plan. This is called incremental optimization. The incremental optimization functionality has been enhanced in SAP APO 4.0.

Selecting Part of a Model

If you are only planning part of a model (by only choosing specific location products for instance), input products of the selected products defined in the production process model (PPM) or products that are available for procurement at a source location through a transportation lane might not be selected and are therefore not planned. Before now, neither input products nor source location products and their stocks were taken into account during planning.

As of SAP APO 4.0, you can specify that the SNP optimizer is to take into account the stocks of non-selected input products or source location products.

Basing on an Existing Plan

If you are planning on the basis of an already existing plan, the plan might be infeasible since the optimizer is not able to plan receipts for shortages that are the result of fixed orders from previous planning runs. To avoid this, it was already possible to specify that the dependent demand and distribution demand of fixed orders were to be treated in the same way as independent requirements; that is, that the optimizer would permit shortages but would calculate costs for not delivering. You can define these non-delivery costs in the product master data for the individual demand types: Customer demand, demand forecast, and corrected demand forecast.

As of SAP APO 4.0, you can also set that the optimizer is to regard the dependent demand and distribution demand of fixed orders and the stocks of unselected input products and source location products as a pseudo-hard constraint. This means that shortages are possible but penalty costs are to be calculated that are defined internally in the optimizer and are infinite. You use them to ensure that the optimizer will only permit shortages if it cannot find any other feasible solution.

Effects on Existing Data

Effects on Data Transfer

Effects on System Administration

Effects on Customizing

You can define the new options for incremental optimization on the Integration tab page within IMG activity Define SNP Optimizer Profiles.

Further Information






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