What is demand planning

Demand planning is 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 BiW )

Processing

- Statistical toolkit in Demand planning

Usable output

- Demand planning gives Multilevel & Multi tier Output at the same
time it also has alert monitor to raise flag & give warnings about
deviation from Forecast

Demand planning can be used for

Collaborative Multilevel Planning planning
Manage Product life cycle
Do Causal analysis
Forecast for new product demand

DP: Demand planning:

Use APO Demand Planning (DP) to create a forecast of

market demand for your company's products. This
component allows you to take into consideration the many
different causal factors that affect demand. The result of
APO Demand Planning is the demand plan.
Demand Planning is a powerful and flexible tool that
supports the demand planning process in your company.
User-specific planning layouts and interactive planning
books enable you to integrate people from different
departments, and even different companies, into the
forecasting process.
Using the DP library of statistical forecasting and advanced
macro techniques you can create forecasts based on
demand history as well as any number of causal factors,
carry out predefined and self-defined tests on forecast
models and forecast results, and adopt a consensus-based
approach to reconcile the demand plans of different
departments.
To add marketing intelligence and make management
adjustments, you use promotions and forecast overrides.
The seamless integration with APO Supply Network
Planning supports an efficient S&OP process.

SNP: Supply network planning:

APO Supply Network Planning integrates purchasing, manufacturing, distribution, and
transportation so that comprehensive tactical planning and sourcing decisions can be
simulated and implemented on the basis of a single, global consistent model.
Supply Network Planning uses advanced optimization techniques, based on constraints
and penalties, to plan product flow along the supply chain. The result is optimal
purchasing, production, and distribution decisions; reduced order fulfillment times and
inventory levels; and improved customer service.
Starting from a demand plan, Supply Network Planning determines a permissible shortto medium-term plan for fulfilling the estimated sales volumes. This plan covers both the
quantities that must be transported between two locations (for example, distribution
center to customer or production plant to distribution center), and the quantities to be
produced and procured. When making a recommendation, Supply Network Planning
compares all logistical activities to the available capacity.
The Deployment function determines how and when inventory should be deployed to
distribution centers, customers, and vendor-managed inventory accounts. It produces
optimized distribution plans based on constraints (such as transportation capacities) and
business rules (such as minimum cost approach, or replenishment strategies).
The Transport Load Builder (TLB) function maximizes transport capacities by optimizing
load building.
In addition, the seamless integration with APO Demand Planning supports an efficient
S&OP process.

PPDS: Production planning & Detailed Scheduling:

The component Production Planning and Detailed Scheduling (PP/DS) enables you to
plan multi-site production while simultaneously taking into account product availablility
and capacity.
PP/DS is designed to plan critical products, for example, with long replenishment lead
times or that are produced on bottleneck resources.
PP/DS supports you in achieving a feasible production schedule with:
Reduced lead times and increased due-date performance, which in turn leads to
a higher degree of customer satisfaction.
Increased throughput of products based on better resource coordination.
Reduced inventory costs because the work in process inventory is reduced as a
result of better coordination of product release.
Production Planning and Detailed Scheduling is used for short-term planning.
Products can be scheduled within the accuracy of a second, while considering sequence
constraints as well as resource capacity.

GATP: Global available to promise:

Increasingly, companies operating worldwide are forced to globalize available
information in order to conduct business efficiently. Specifically, this means that
information has to be made available across system boundaries as quickly as possible to
provide optimized decision support.
Global ATP can be used in heterogeneous system landscapes to provide necessary
information as quickly as possible.
Global ATP is one of the central methods of APO that utilizes liveCache, a technology in
which data is stored in the form of time series. The data is stored in liveCache in the
form of time series.

Backorder processing in APO fulfils a basic request to Supply Management that consists
of changing confirmed quantities and dates in the framework of the ATP check.
Backorder processing is essentially set to process requirements entered, and to diagnose
and cancel backorder situations.
When entering sales orders, you can only confirm the delivery of the goods on the
delivery date if they are available for all processing activities preceding the delivery.