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2003 SAP AG. All rights reserved Page 2 of 12

Backorder Processing – Check on schedule line level

ComponentGlobal Available-to-Promise (SAP APO ATP)

Management Summary

The goal of a check on schedule line level is to avoid the long term allocation of confirmedquantities in Backorder Processing (BOP) as it is the case for long term requirements (e.g.scheduling agreements). By maintaining the check level per ATP category, requirement items canbe checked on item level or on schedule line level.

Business Value

The setting of the check on schedule line level in Backorder Processing is fundamental. It’s a

fundamental business decision how to handle the different order types (like scheduling agreement)and not dependent on the actual situation.

The document types scheduling agreement and contract create normally long term allocations ofconfirmations with several requested schedule lines. The required delivery dates of these schedulelines are distributed over a longer period (e.g. one y ear). If an availability check is executed for anitem, then all required schedule lines are checked together. Thereby the full confirmed quantity isallocated for this order item, even if the quantities are requested in one year from now.

Via the check level BOP can treat for example sales orders on item level and schedulingagreements or contracts on schedule line level.

Limitations

The following limitations have to be noticed:

• The setting of the check level is currently only supported in BOP



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Backorder Processing – Stock Transport Orders

ComponentGlobal Available-to-Promise (SAP APO ATP)

Management Summary

Up till now Backorder Processing (BOP) doesn’t include Stock Transport Orders (STO’s). Thisfunction is essential for reallocation of confirmed quantities if these documents compete in theonline process with sales requirements which already are treated within BOP. By including STO’sone can avoid that stock transport orders are a lways regarded as confirmed.

Business Value

The new development for STO’s in BOP adds business value by giving flexible prioritization toexternal requirements (sales requirements) and internal requirements (STO’s). In addition to the

basic method of product availability check, product allocation check can also be used for STO’ swithin BOP.

Stock Transport Orders are also considered in interactive BOP.

Annotations

Regarding constraints in the area of SAP R/3 purchase orders BOP can provide the samefunctionality covered by online ATP. This results in the following limitations:

• The original requested delivery date and quantity of STO’s is unknown after an ATPcheck (either in R/3 or APO). This means that once treated with BOP, STO’s will keeptheir confirmed dates and quantities as requirements following the current R/3 logic ofSTO’s requirements treatment (same functionality like rescheduling STO in R/3 4.6C).

• Rules can’t be executed since STO’s do not support that functionality.

• The basic method forecast is not supported by STO’s.

• STO’s do not support the delivery group correlation.

Restrictions

The following limitations have to be noticed:.

• If sales requirements and STO’s are treated within BOP, only the common filter and sortcriteria are considered.

• Only the document types STO and suppliers' scheduling agreements (ATP-categories

‘BI’, ‘EG’ and ‘EJ’) are supported.

• The transportation scheduling is done in LC during the update and therefore therescheduling setting of BOP is not supported.

Requirements

• The new functionality requires at least R/3 release 4.6C or higher and Plug In release2003.1 or higher.



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Characteristics Substitution for batch selection criteria inRules-Based ATP

Component

Global Available-to-Promise (SAP APO ATP)

Management Summary

Characteristics substitution for batch selection criteria in rules-based ATP introduces rules for thesubstitution of characteristics, in the same way as material or location substitutions are alreadypossible. It offers the option of executing a simulative rules -based ATP check for batches andallows selecting the best result interactively.

Business Value

The new development for characteristics substitution in rules-based ATP adds business value by:

• Transportation costs savings

• Allowing substitution of values for characteristics, and characteristics specified withmultiple values in rules-based ATP, will allow more flexible business processes andimprove material usage.

Description

The new functionality will enhance the Rules–Based ATP with the substitution of characteristics forbatch selection criteria.

For example a specific customer usually orders batches with medium quality, if this quality is notavailable, but a high quality batch is available, this will be offered to the customer to ensurecustomer satisfaction.

The second enhancement is simulation and comparison of different possible confirmations and theselection according to the best business needs.

For example:

50 pc of medium quality are ordered and two possibilities exists to fulfill the order

• Plant 1 20 pc of medium quality are available and in

• Plant 2 30 pc of medium quality are available.

• Plant 1 50 pc of high quality are available

Now the decision can be taken, if the products should be delivered to the customer from 2different plants or if it is less expensive regarding transportation cost to deliver the highquality batch from one single plant.

This means considering best partial confirmations in Rules-Based ATP allows the order to bedelivered completely from one location using material substitution if necessary.



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This comparison can be done interactively or using a user exit.

In customer projects the user exit enables to carry out project specific optimization procedures. Atypical example for a implementation of the user exit is to use the characteristics substitution for a

global search for batches with the lowest use-by date if the lowest use-by date is defined as acharacteristic for batches.

Limitations

• The characteristics substitution in rules-based ATP is l imited by all factors of normalcharacteristics-based ATP.

• Performance:

o The number of characteristics relevant for the ATP check should be low.

o Checking all possible substitutions in the simulation will increase the runtime.

•Only lists of characteristic values will be possible, not intervals.

• The combination of substitution and CTP is not supported.

• R/3 4.6 or higher is necessary for the complete process

Future

In future releases other characteristics substitutions for example for variant configuration will bedeveloped.



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Change SAP R/3 Deliveries and Shipments from SAPAPO TP/VS

Component

Transportation Planning and Vehicle Scheduling (APO-VS, APO-VS-MAP), R/3

Management Summary

You can change planned times of deliveries in TP/VS after they have been transferred to R/3. Youthen trigger the update of the changed deliveries in R/3. The system updates also times and thestructure in R/3 for shipments, which you change in TP/VS.

Business Value

This improvement adds business value because it allows shipments to be rescheduled even in

cases where planning has been “completed”.

Thus the transportation planning and execution is integrated further. This increases the flexibility oftransportation management:

• Very late orders also can be integrated in the transportation plan.

• Instead of updating the shipments and deliveries only in the execution system, you u pdatethem in the planning system.

o Thus all of the changes are known in TP/VS as well as in R/3.

o Last minute changes for existing shipments are made easy. You get a betteroverview on the consequences.



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Display Local Times in Interactive Planning

ComponentTransportation Planning and Vehicle Scheduling (APO-VS-INS, APO-VS-BF, APO-VS)

Management Summary

On the interactive planning screen, data for date and time is displayed on the basis of the timezone to which the location belongs. For example, the time of arrival at a customer location isdisplayed based on the time zone of this location, instead of the time zone of the dispatcher.

Business Value

Local times in the interactive planning screen add business value because they:

• Make communication easier (for example, for meeting a time window)

• Improve the overview of the dispatcher (for example, it is easier to recognize the time ashipment arrives)



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Improved Selection of Orders, Deliveries, and Shipments

Component

Transportation Planning and Vehicle Scheduling (APO-VS, APO-VS-MAP)

Management Summary

To use interactive planning in TP/VS, you first select the orders you want to plan. You can choosefrom an enhanced set of selection criteria when defining an optimization profile for general use aswell as when specifying the scope of the next planning run.

Improvements have also been made to the selection of planned shipments and associateddeliveries in interactive planning for the transfer to SAP R/3.

Business Value

The improved set of criteria for selecting orders adds business value because it allows you to buildsmaller and more precisely defined work packages for your planning and for the optimizer. This:

• Improves optimizer performance through enhanced decomposition options

• Improves the overview for the dispatcher

• Allows responsibility to be assigned on a more individual basis between a group ofdispatchers

• The new possibilities for selecting the deliveries and shipments to be transferred to theexecution system improve usability and parallel processing.

Description

The workload for a planning run is selected using a predefined optimization profile. This profilenow holds additional criteria to make the selection more powerful.

After the planning run is finished one needs to transfer the planning results to an OLTP system.You now can use different criteria to select the shipments to be transferred instead of searching forthem in a list of all released shipments for a certain period. You may also send a completeshipment from the interactive planning screen directly to SAP R/3.



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Integration of Geographic Information Systems

Component

APO TP/VS (APO-VS-INS, APO-VS-BF, APO-VS)

Management Summary

You can integrate data of various external Geographical Information Systems (GIS) into TP/VS viaa standard interface. The data is used to calculate distances and driving times within the planning.

Business Value

Using GIS data adds business value because it:

•

adds more accuracy to the planning by using street distances and therefore creates bettervehicle scheduling results

• increases the acceptance of the product by the users

• does all this cost efficient by using GIS data and services from third party vendors withdetail levels suited to your need.

Description

TP/VS connects to external GIS data via the Internet Graphics Server. Multiple GIS providers canbe connected simultaneously. The following GIS services can be obtained:

• determine geo-coordinates for addresses

• determine distance and travel time between locations within vehicle scheduling

Limitations

Only third party map-services, which are compatible with the IGS-Interface, can be used.



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Manual and Pool Shipment Planning

Component

Transportation Planning and Vehicle Scheduling (APO-VS-INS, APO-VS-BF, APO-VS)

Management Summary

This function allows you to plan and change shipments in which one or more orders use diff erentvehicles in a sequence. You do this by manually inserting stages and assigning orders to thesestages using drag and drop technology.

Business Value

This enhancement adds business value because it allows the dispatcher to create and changeshipments manually, in addition to the fully automated planning of the vehicle scheduling optimizer.

Description

The interactive planning screen offers a new tab strip that renders the functionality needed tocreate, change and maintain pool shipments. Several drag and drop functions allow assigningvehicles and orders to these shipments. Additional checking routines ensure that only validshipments are created.



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Order Split through Delivery Creation

ComponentTransportation Planning and Vehicle Scheduling (APO-VS-OPT, APO-VS-MAP)

Management Summary

Large sales or purchase orders (quantity to be shipped) may exceed the capacity of a singlevehicle. SAP APO TP/VS now offers an order split, which is a functionality that will allow insertingalso these “large” orders into transportation planning.

Business Value

The order split adds business value because it:

• Allows you to automatically plan order items that exceed the capacity limits of vehicles

•

Allows individual setups using user-defined splitting rules• Saves Customizing effort by providing standard rules for the split

Description

If the shipping volume of a single position of a sales order exceeds the capacity of a vehicle, theorder split will create a sequence of deliveries that (1) in sum represents the original qua ntity and(2) has the advantage that no single delivery exceeds the vehicle capacity. The split routine can betriggered manually. The order split is based on splitting rules. The splitting rules control how anoversize position will be splitted.

The rules are user-definable. An example would be: The maximum size of a delivery traveling onthe lane XYZ (e.g. Munich to Hamburg) using the vehicle type “Truck” is 20 tons. If it exceeds 20tons, the order should be splitted into packages of 10 tons. If no spec ific rules are found, defaultrules will be used. The user can control which rules will be applied by maintaining an accesssequence.



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Start Vehicle Scheduling with Initial Solution / Providingan interface for Customer Specific Heuristics

Component

APO-TP/VS (APO-VS)

Management Summary

This new enhancement allows you to start the optimizer together with an initial solution. You alsocan use customer specific heuristics to find such initial solution. The optimizer then attempts toimprove this solution.

Business Value

This enhancement adds business value because it:

• Allows you to incorporate manual solutions in the planning process that can then beimproved by the optimizer. This combines the expertise of the planner with an automaticand fast search using software algorithms. As a result, performance is improved in termsof quality and speed.

• Delivers the interface for alternative heuristics for speeding up the step -by-step planningprocess. These you can define and implement specifically for your purposes.

• Allows you to save time by using a shorter runtime of the optimizer. You can then checkthe intermediate result and:

- Accept the result if it is satisfactory. Runtime is reduced by finishing optimizationearlier.

- Proceed if you want to further improve the result. Time is saved by not having to beginagain from scratch.

Description

When starting the interactive planning screen, you see the selected orders in the planning window,as well as shipments that have been planned already. Shipments that you do not fix areautomatically incorporated in this new optimization instead of being deleted and their orders beingplanned again. The optimizer improves the solution by changing these shipments.

CopyrightCopyright ¡ 2003 SAP AG. All rights reserved

No part of this document may be reproduced or transmitted in any form or for any purpose withoutthe express permission of SAP AG.

The information contained herein reflects current planning and may be changed without priornotice.

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