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OPRE 6369- Supply Chain Software > Final Exam > Flashcards

Final Exam Flashcards

1
Q

A few hallmarks of an APS system usually include:

A
  • fewer internal users than ERP systems.
  • the use of memory resident models in addition to traditional data base management systems.
  • advanced planning & scheduling functionality.
  • advanced optimization algorithms such as linear programming and other heuristics.
  • planning at a finer time increment.
  • ability to do rapid what-if simulation.
  • advanced problem notification.
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2
Q

Major APS software providers are:

A
  • SAP
  • i2 Technologies
  • Manugistics (now JDA)
  • Oracle (up and coming)
  • plus others.
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3
Q

The SAP APO application is SAP’s version of

A

Advanced Planning & Scheduling

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4
Q

APO is bundled with several other advanced planning applications into mySAP SCM 5.0.

A
  • Advanced Planning & Optimization (APO)
  • Forecasting and Replenishment–retail.
  • Inventory Collaboration Hub
  • Event Manager
  • Extended Warehouse Management

(^^all of those 5 things have one thing in common—> all used for supply chain.

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5
Q

APO is all about

A

planning.

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6
Q

APO Demand Planning (DP) is used

A

to create a forecast of market demand for your company’s products.

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7
Q

APO DP allows you to take into consideration the many different causal factors that affect demand.

A

DP Contains a large library of statistical forecasting models.
-customers may also develop unique forecasting models using a powerful macro tool.

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8
Q

Forecasts created by APO DP may be released to

A

APO Supply Network Planning or passed to R/3 for MRP planning.

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9
Q

APO Supply Network Planning (SNP) integrates

A

purchasing, manufacturing, distribution, and transportation so that a comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model.

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10
Q

Starting from a demand plan, Supply Network Planning creates a

A

medium-term, rough-cut plan for fulfilling the estimated sales volumes.

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11
Q

Supply Network Planning uses advanced optimization techniques, based on

A

constraints and penalties, to plan product flow along the supply chain.

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12
Q

APO Production Planning/Detail Scheduling (PP/DS) is intended to be a

A

short-term (1-6 weeks), detailed planning and scheduling tool.

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13
Q

The PP portion of PP/DS is capable of creating

A

finite supply chain plans taking capacities into consideration.

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14
Q

The DS portion of PP/DS is capable of creating

A

optimized scheduling sequences.

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15
Q

PP/DS accomplishes its primary mission by

A

using various advanced heuristic and linear programming algorithms.

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16
Q

APO Global Available to Promise (GATP) is

A

an advanced order promising tool.

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17
Q

GATP extends the Available-To-Promise capability currently in SAP R/3 to include:

A
  • Multiple Plant Planning
  • Simulation of orders (Capable-To-Promise)
  • Rule-based order promising.
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18
Q

APO Transportation Planning/Vehicle Scheduling (TP/VS) is intended to

A

optimize the planning and scheduling inbound and outbound freight.

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19
Q

The Transportation Planning portion of TP/VS enables you

A

to make optimal use of the available capacity of trucks, trains, ships, and airplanes.

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20
Q

The Vehicle Scheduling component of TP/VS will

A

optimize the delivery routes.

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21
Q

TP/VS utilized

A

advanced linear programming algorithms to accomplish its mission.

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22
Q

The APO Alert Monitor is an

A

advanced monitoring system to detect supply chain problems at the earliest possible time.

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23
Q

The APO Alert Monitor is capable of

A

operating within all the APO sub-modules (DP, SNP, PPS/DS, TP/VS).

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24
Q

APO Alert conditions may be

A

customized by company or individual user.

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25
Q

The portion of the APO Architecture where most data and calculations are performed is called

A

Live Cache.

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26
Q

The purpose of the BW (Business Warehouse) is

A

to store historical sales data to forecast.

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27
Q

The APO Modules where forecasting is done is

A

Demand Planning.

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28
Q

The APO Module used for Advanced Order Promising is called

A

Global ATP

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29
Q

The APO module used for advanced problem notification is called

A

Alert Monitor.

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30
Q

Characteristics usually in an APO System include:

A
  • Fewer internal users than ERP Systems (fewer users).
  • The use of memory resident models in addition to traditional data base management systems.
  • Advanced planing & scheduling functionality.
  • Advanced optimization algorithms such as linear programming and other heuristics (advanced mathematical techniques).
  • Planning at a finer time increment.
  • Ability to do rapid what-if simulations (rapid what-if simulations).
  • Advanced problem notification.
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31
Q

The APO Core Interface Framework (CIF) is used for

A

the data exchange between SAP APO and SAP R/3 Systems.

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32
Q

The CIF will transfer both

A

master data and transaction data from SAP R/3 to SAP APO and also from SAP APO to SAP R/3.

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33
Q

Data passing between SAP R/3 and SAP APO may be

A

either real-timed or batched.

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34
Q

The IT Technology used for the interface is the

A

Remote Function Call (RFC).

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35
Q

The passing of data is enabled by

A

the creation and maintenance of Integration Models.

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36
Q

All Integration Models are defined in

A

SAP R/3 (host system)

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37
Q

Multiple Integration models will be used in connecting SAP R/3 to APO. Each model will transfer different data.

A

Example– an integration model will be defined for transferring the organizational data elements (plant, storage locations, etc) to APO.

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38
Q

Integration models are always defined in the

A

SAP R/3 system.

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39
Q

Various definitions muse be made in configuration in

A

both R/3 and APO.

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40
Q

R/3 and APO contain various tools for

A

monitoring and handling integration errors.

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41
Q

Master data that was originated in SAP R/3 is

A

maintained in R/3.

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42
Q

Master data that is unique to APO is

A

maintained in APO.

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43
Q

All Master Data transferred using the CIF is

A

automatically assigned to model 000 (Active model) in live cache.
-Therefore models in APO contain master data.

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44
Q

Since APO may be used for simulation or what-if planning,

A

other models may be created that contain master data different from the model 000 (Active model).

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45
Q

All transaction data that is transferred to APO through the CIF is

A

stored in Version 000 (Active Version).

-Examples of transaction data would be forecasts, sales orders, etc.

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46
Q

Since APO may be used for simulation or what-if purposes,

A

other versions may be created that contain transaction data different from Version 000 (active version).

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47
Q

All transaction data transferring from APO to R/3 must be

A

stored in Version 000.

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48
Q

The key ingredient to passing data through the Core Interface is

A

Integration Models.

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49
Q

The Core Interface can connect

A

multiple R/3 systems to a single APO server.

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50
Q

Master data that originated in R/3 and passed to APO through the Core Interface should be maintained in

A

R/3.

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51
Q

When Transaction data passed through the Core Interface it is stored in which area of Live Cache?

A

Version 000.

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52
Q

Master data is stored in

A

Models.

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53
Q

Transaction data is stored in

A

Versions.

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54
Q

Integration models are always made in the

A

ERP (R/3).

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55
Q

The Master Data Objects in SAP APO have different names from their SAP R/3 counterparts. For example, the material master in R/3 is named

A

Product Master in APO.

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56
Q

Many of the APO master data fields originate in R/3 and are

A

transferred through the Core Interface (CIF).

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57
Q

APO has many master data fields that do not have counterparts in R/3. These master data fields are

A

needed to perform the APS functionality that does not exist in R/3.

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58
Q

APO also has one master data objects that

A

does not have a R/3 counterpart.

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59
Q

Master data is maintained in its

A

system of origin.

R/3 fields in R/3 and APO fields in APO.

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60
Q

The Location Master is a common master data object used to house the following R/3 objects:

A
  • Plant
  • Customer
  • Supplier
  • Plus others.
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61
Q

The location master is crucial to supply chain management because

A

it is the building block for so many other relationships.

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62
Q

The Location Type will

A

distinguish between the different location masters.

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63
Q

The APO Transportation Lane (TL) does

A

NOT have a R/3 counterpart.

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64
Q

The TL defines all

A

valid transportation methods between two locations.

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65
Q

TLs may be defined for

A

all products moved between two locations or may be specific by product.

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66
Q

If no TL exists between two locations then

A

one location cannot be a source of supply to the other.

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67
Q

The TL may define

A

multiple valid transportation means (truck, rail, air) along with the transportation time and cost for each.

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68
Q

APO sourcing algorithms will examine the

A

TL for cost and time data to determine the optimum method.

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69
Q

The Quota Arrangement determines the

A

source and quantity demanded when several possible suppliers (i.e. locations) are available.

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70
Q

Quota arrangements exist in R/3 but

A

are NOT used in APO.

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71
Q

Quota arrangements may be defined for all products sourced from a location or

A

it may be product specific.

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72
Q

Product splits may be defined as:

A
  • Fixed split.
  • Determined by a heuristic algorithm.
  • Determined optimally and then remain fixed.
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73
Q

If there is only 1 source of supply than

A

no quota arrangement is needed.

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74
Q

The APO Product Master is the

A

direct equivalent of the R/3 Material Master.

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75
Q

Most of the data from the MRP data views will

A

pass through the Core Interface to create the Product Master.

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76
Q

The Product Master will also contain data elements that do not exist in R/3. A few examples are:

A

-Penalty Costs–these reflect the relative cost of missing an order due date.
-Storage Costs–the relative cost of storing a product.
-Good receipt/issue costs.
~These costs are used to influence the Optimizer program in Supply Network Planning.

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77
Q

The APO Resource Master is the direct equivalent of the

A

R/3 Work Center (discrete) or Resource (process).

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78
Q

The APO Resource Master is considerably more

A

flexible than its R/3 counterparts.

For example, in R/3 a work center may have multiple capacities (labor and machine).

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79
Q

When used in a APO environment,

APO Resource Master

A

each capacity will create a separate and distinct resource. This allows for capacity planning for both resources.

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80
Q

Finally, the APO Resource may be used to

A

model transportation and material handling resources.

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81
Q

Resources in APO may be

A

Model/Version dependent for what-if simulation purposes.

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82
Q

The APO Production Process Model (PPM) is a

A

complicated and sophisticated object that combines the major components of the R/3 BOM and Routing.

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83
Q

There the PPM will contain

A

all the materials required and all the process steps, resources and processing times.

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84
Q

Additionally the PPM may also contain production cost data. This allows for PPMs to be created for various locations (plants) with different production costs.

A

A linear programming sourcing model may then determine the optimum quantity to source from each location.

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85
Q

Two Types of PPMs

PPM=Production Process Model

A
  • PP/DS Plan

- SNP Plan

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86
Q

??

A

??

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87
Q

??

A

??

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88
Q

The APO Procurement Relationship object is the direct equivalent of the R/3 Purchasing Information Record, Contract or Scheduling Agreement.

A

Since all of these R/3 objects define a valid relationship between a supplier and a trading partner the Core Interface will automatically create a Transportation Lane.

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89
Q

The APO master data object that is required before a valid source of supply can exist is the

A

Transportation Lane.

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90
Q

The APO master data object that does not have a direct equivalent in R/3 is

A

Transportation Lane.

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91
Q

The APO master data object that combines the R/3 BOM and routing together is the

A

Production Process Model (PPM).

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92
Q

A purchasing Information Record in R/3 that passes through the Core Interface will automatically create what APO master data object?

A

Procurement Relationship and Transportation Lane.

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93
Q

A forecast is a

A

prediction of a variable of interest for a future time period.

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94
Q

The three absolutes of forecasting are:

A
  • Forecasts are always wrong.
  • Forecasts are more accurate in groups rather than individuals.
  • Forecasts are more accurate in the near term.
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95
Q

Forecasting techniques in SAP are:

A
  • Manual
  • Sales & Operations Planning (SOP)
  • Flexible Planning (R/3)
  • APO Demand Planning
96
Q

Forecasts are almost always generated at a product family level as a background job that runs automatically.

A

Various organizations may make independent forecasts. Examples may include: sales, marketing, finance, and operations management.

97
Q

The frequency of running the forecast will vary from company and industry.

A

However, a monthly update frequency is the most common.

98
Q

For each forecast cycle some time periods will be re-forecasted and some time periods will be forecasted for the 1st time. The overall horizon of the forecast is dependent upon several factors including:

A
    1. Purpose of Forecast.

- 2. Cumulative Product Lead Time.

99
Q

The forecast cycle may terminate with a consensus forecast as part of a Sales & Operations Planning (S&OP) meeting.

A

When the automatic forecast is completed, any alert conditions are noted and sent to customers.
-Adjustments to automatic forecast are usually performed manually.

100
Q

Typical Industry Forecasting Process:

A 
1-Update history.
2-Automatically generate forecast.
3-Review/correct forecast.
4-Reach consensus forecast.
5-Approve forecast.
---then repeats and goes back to 1-update history, and so on.
101
Q

Elements of a Good Forecast:

A
  • Timely
  • Reliable
  • Accurate
  • Meaningful
  • Written
  • Easy to Use
102
Q

Approaches to Forecasting:

A
  • Qualitative Method

- Quantitative Method

103
Q

Qualitative Method (approach to forecasting):

A

-Subjective inputs.

104
Q

Subjective inputs

A
  • “Soft” information-(human factors, personal opinion, hunch)
  • hard to quantify.
105
Q

Quantitative Method (approach to forecasting):

A
  • objective, or hard, data
  • projection of historical data
  • associative models utilizing explanatory variables.
106
Q

Types of Forecasts:

A
  • Judgmental
  • Time Series
  • Associative Models
107
Q

Judgmental

type of forecast

A
  • Qualitative Method
  • uses subjective inputs.
  • -(consumer surveys, sales staff, managers/executives expert panels).
108
Q 
Time series
(type of forecast)
A
  • Quantitive method

- uses historical data assuming the future will be like the past.

109
Q 
Associative models
(type of forecast)
A
  • quantitive method

- uses explanatory variables to predict the future.

110
Q

Time Series Forecasts

A
  • -Time Series-time-ordered sequence of observations taken at regular intervals.
  • -Assume future can be estimated by past.
  • -Identify underlying behavior without identifying causes.
111
Q

Trend

(Time Series Forecasts

A

long-term upward/downward movement in data.

112
Q

Seasonality

(Time Series Forecasts

A

short-term regular variations in data

113
Q

Cycle

Time Series Forecasts

A

wavelike variations of more than one year’s duration

114
Q

Irregular Variations

Time Series Forecasts

A

caused by unusual circumstances

115
Q 
Random Variations 
(Time Series Forecasts)
A

caused by chance… what’s left.

116
Q

Techniques for Averaging

A
  • Historical data has “white noise or variation”
  • Averages smooth variations
  • 3 techniques:
  • -Moving average
  • -weighted moving average
  • -exponential smoothing
117
Q

Moving Averages

A

Technique that averages a number of recent actual values, updated as new values become available.

118
Q

Weighted Moving Averages

A

more recent values in a series are given more weight in computing the forecast.

119
Q

Exponential Smoothing

A

weighted averaging method based on previous forecast plus a percentage of the forecast error.

-where alpha (Smoothing error) is greater than or equal to zero but less than or equal to 1.

120
Q

Picking a smoothing constant

A
  • low alpha -stable average

- high alpha- changing average

121
Q

After the demand plan has been approved for it must be released for operations planning.

A

Various potential paths exist for releasing the demand plan.

122
Q

After the release process, the forecast requirements will be classified as

A

planned independent requirements (PIR).

123
Q

The forecast release almost always will contain four basic parameters:

A

1) product
2) location
3) quantity
4) time

124
Q

MRP in R/3 or SNP in APO may act on

A

PIRs to create replenishment planned orders.

125
Q

APO Supply Network Planning (SNP) is

A

an intermediate time frame planning function.

126
Q

APO Supply Network Planning (SNP) primary purpose is

A

to provide supply and demand matching across the entire supply chain.

127
Q

SNP may be used for

A

either infinite or finite capacity planning.

128
Q

Three separate and unique replenishment planning engines are bundled into SNP:

A
  • Heuristic
  • Capable-To-Match (CTM)
  • Optimizer
129
Q

In addition to supply and demand matching, SNP is capable of performing two additional supply chain management functions:

A
  • Deployment

- Transportation Load Builder

130
Q

Medium to Long-term Planning Strategies:

SNP Planning Engines

A
  • Infinite Planning

- Finite Planning

131
Q

Infinite Planning

SNP Planning Engines

A

-Heuristic: Resources and material availability are not checked when creating planned orders and stock transfers.

132
Q

Finite Planning

SNP Planning Engines

A

-Capable-to-Match (CTM) and optimizer:
Simultaneous quantity and finite capacity scheduling: SNP resources and material availability are checked during creation of orders.

133
Q

Short-Term Replenishment Planning (Deployment)

SNP Planning Engines

A
  • Heuristic and optimizer

- Transport Load Builder (TLB)

134
Q

Heuristic and Optimizer:

SNP Planning Engines

A

Adjust stock transfers according to the current demand and receipt situation.

135
Q

Transport Load Builder (TLB)

SNP Planning Engines

A

Groups together stock transfers.

136
Q

All transaction data is stored as

A

orders in the order live cache.

137
Q

Order Based Live Cache

A
  • ATP categories are used to differentiate orders.

- ATP categories can be grouped together into ATP category groups.

138
Q

The role of Heuristic planning is to

A

plan the supply to meet demand throughout the entire supply chain.

139
Q

Heuristic planning is

A

quantity-based planning.

This means it will create a supply quantity for a specific time period regardless of the actual order quantities.

140
Q

The SNP Heuristic plans in a level-by-level planning method similar to

A

MRP in SAP R/3.

141
Q

Heuristic planning assumes

A

infinite capacity when planning.

142
Q

Sourcing decisions (that is, what locations should be used as supplies) is driven primarily by

A

Quota Arrangements.

143
Q

Quota Arrangements in Heuristic

IOTDT

A
  • I-Inbound quota arrangements control distribution of demands.
  • O-outbound quota arrangements control distribution of receipts.
  • T-there are quota arrangements for individual products and selections.
  • D-Demands can be split (minimum quantity) and grouped together for time periods.
  • T-The following can be included in a quota arrangement:
  • -External Procurement
  • -Stock Transfer
  • -In-house production.
144
Q

Other APO Master Data Used in Heuristic

TQLCSSP

A
  • T-Transportation Lanes (valid movements in the supply chain).
  • Q-Quota Arrangements (percentage assignment of demands to sourcing locations).
  • L-Lot sizing (lot-for-lot, fixed, target days’ supply, rounding profiles, rounding values).
  • C-Calendar
  • S-Safety Stock
  • S-Scrap
  • P-PPM
145
Q

SNP Heuristic planning is based on

A

the assumption that resources have an infinite capacity.

146
Q

After the SNP Heuristic run is complete,

A

the planner can make a capacity check, which allows the planner to see the impact that planned orders will have on resources and to quickly determine whether or not the plan is feasible.

147
Q

If there is a capacity overload, an alert is displayed.

A

The planner can decide how to modify the production plan to meet demand before actually going into production.

148
Q

Capacity Balancing Alternatives

A
  • Increase capacity through overtime or additional resources.
  • Move work backward in time where capacity is available (subject to material availability).
  • Move work forward in time where capacity is available (subject to material availability).
  • Move work to an alternate resource.
  • Split the order (i.e. sub-divide) into quantities that will meet available capacity.
149
Q

APO SNP is an

A

intermediate range planning tool.

150
Q

APO SNP will plan supplies to match demands using several potential software algorithms:

A
  • Heuristic-infinite capacity planning only.
  • Optimizer-finite capacity planning.
  • Capable-To-Match (CTM)-infinite or finite capacity planning.
151
Q

Linear Programming (LP)

A

traces its history to the 1940’s as a method of solving complex planning problems with war time implications.

152
Q

George Dantzig is considered

A

the primary inventory of LP but John von Neumann is also considered by many as a co-inventor.

153
Q

LP is a

A

special class of mathematical problems in which a linear function (called he objective function) is either minimized (like costs) or maximized (like profits).

154
Q

The other two components of a linear programming problem besides the objective function are:

A
  • Decision variables.

- Constraints.

155
Q

Decision variables are used to

A

model the various “decisions” that may be required in supply chain planning.

156
Q

Examples of Decision variables are:

A
  • What products should be produced?
  • How much of each product should be produced?
  • Where should the products be produced?
  • How should the products be transported?
157
Q

Constraints represent

A

realities that essentially “bound” the solution options to that the result is feasible.

158
Q

Examples of constraints include:

A
  • Demand must be met.
  • Cannot exceed capacity.
  • Storage capacity is limited.
159
Q

In many cases, the objective function may be non-linear. In this case other solution techniques must be employed.
A few optimization techniques are:

A
  • Non-linear Programming (NLP)
  • Mixed-Integer linear programming (MILP)
  • Mixed integer non-linear programming (MINLP)
160
Q

SAP APO supports

A

LP and MILP problems

161
Q

The Optimizer or “solver” in APO SNP uses

A

linear programming to consider all relevant factors simultaneously.

162
Q

SAP has embedded a 3rd party “solver”–

A

ILOG CPLEX into the APO system.

163
Q

The optimizer compares alternative solutions using costs that would be incurred.

A

It determines the most cost-effective solution based on the constraints and objective function defined in the system.

164
Q

You use penalty costs to prioritize demands. If a product brings in high sales revenues, you

A

set high penalty costs.

165
Q

The result of the optimization run might be that

A

due dates are violated or that safety stocks are not replenished.

166
Q

Capable To Match (CTM) is an

A

order-based planning method, which means that every single sales order or Planned Independent Requirement PIR is planned separately.

167
Q

CTM uses

A

demand priorities as the primary basis performing supply network planning.

168
Q

Demand priories may be defined using

A

multiple methods consistent with corporate policy or culture.

  • For example, demand priorities may be defined as:
  • -preferred customer
  • -due date
  • -revenue
169
Q

CTM is capable of planning with

A

either finite or infinite capacity assumption.

170
Q

CTM does not perform

A

optimization.

It terminates when it finds the 1st feasible solution to the problem.

171
Q

The following uncertainties occur during planning:

A
  • Demand uncertainty (forecast)

- Replenishment lead time.

172
Q

To safeguard against these uncertainties, you can plan safety stock (SStk) as follows:

A
  • maintaining the safety stock manually in the product master.
  • Calculate the time-dependent safety stock in an SNP key figure in the Interactive Planning Table.
  • Create a model dependent safety stock to achieve a certain customer service level.
173
Q

APO SNP provides

A

more sophisticated safety stock planning than R/3.

174
Q

At the time of actually executing the distribution plan,

A

the stock levels, stock receipts and sales orders are not at the same levels as when the planning run was run last.

175
Q

For example, SNP created a planned order for 500 during a planning run 3 months ago. The order due date is next week. However, there were production problems and the order qty is now 450.

A

This means that we can only distribute (that is, deploy) 450 instead of the 500 originally expected.
-The SNP Deployment process will determine how the remaining 450 will be deployed to their respective destinations.
It uses various “fair-share” rules.

176
Q

Actual deployment orders are created in

A

R/3.

177
Q

Once the question of deployment has been determined, then we can begin to do some

A

transportation planning.

178
Q

Transportation Load Builder (TLB) is a

A

lite-transportation load builder that will optimize the use of the transportation fleet of vehicles.

179
Q

TLB only creates

A

full loads.

180
Q

TLB does not perform

A

any route planning.

181
Q

Actual transportation orders are created in

A

R/3.

182
Q

The APO Supply Chain Engineer (SCE) is a

A

convenient graphical tool that allows customers to graphically view and edit their APO master data objects.

183
Q

With literally thousands of master data elements in a supply chain,

A

the management of master data can become overwhelming.

184
Q

The SCE allows a customer to

A

create a filter containing those master data objects that are under his responsibility.
-The resulting filtered master data objects is called a “work area”

185
Q

The resulting filtered master data objects is called a

A

“work area”

186
Q

Work areas provide a

A

convenient way to filter the master data.

187
Q

Software implementations can be a high risk, high cost and potentially disastrous process for a company.

A

Rarely are software implementations a slam dunk success.

188
Q

Many factors influence the overall success of a software implementation including:

A
  • project manager.
  • top management support.
  • technical issue.
  • end user issues.
  • end user training.
189
Q

Software implementation methodologies reduce

A

the risk and cost of a software implementation.

190
Q

A methodology is a

A

structured, proven process of accomplishing a task.

191
Q

Software implementation methodologies have existed for many years.

A

They are usually defined by major phases.

192
Q

The SAP software implementation methodology consists of the following phases:

A
  • Project preparation.
  • Business blueprint.
  • Realization.
  • Final Preparation.
  • Go live & support.
193
Q

The project preparation phase will define the general conditions for implementation the project successfully. It will include:

A

-defining the goals and objectives of the project.
-establishing the project organization.
-creating the project plan.
-determining the project standard procedures.
-training the project team.
-setting up the SAP 3-system landscape.
creating a communication plan for the project.
-take certain benchmark measurements.

194
Q

The business blueprint phase is a critical phase in the methodology.

A

Failure to take adequate time to lack of forward thinking in this phase will significantly increase the risk of the overall project.

195
Q

In the business blueprint phase, each major department being affected by the scope of the software will undertake an analysis of their current processes.

A

The resulting analysis will document the functional requirements that the new software implementation.
-Example-the SAP system should capable of automatically determine a source of supply for a requirement.

196
Q

The Realization phase will begin the implementation of the functional requirements defined in the Business Blueprint phase.
This phase will include the following activities:

A
  • Configuring the SAP system.
  • Setting up the test environment.
  • Setting up the security/administration settings.
  • Setting up any workflow processes.
  • Writing test scripts.
197
Q

The Final Preparation Phase will include the following activities:

A
  • Loading master data.
  • Unit, function and integration testing.
  • End user training.
  • Customer sign-off.
198
Q

The Go Live & Support phase will launch the new application and provide the necessary support for a period of time required to achieve institutionalization.
Activities include:

A
  • End user re-training.
  • Software trouble call support.
  • Software de-bug support.
  • Configuration re-setting.
199
Q

Demand Plans (forecasts) created in APO DP may be:

A
  • Released to APO Supply Network Planning.

- Transferred to SAP R/3.

200
Q

Released Demand Plans must have what information?

A
  • Product
  • Quantity
  • Location
  • Time
201
Q

After demand plans have been released to APO, they are stored in what part of APO live Cache?

A

Order-based Live Cache

202
Q

After demand plans have been released they become what transaction data?

A

Planned Independent Requirements (PIR)

203
Q

The APO Supply Network Planning (SNP) module is used primarily for

A

Intermediate Supply planning.

204
Q

The objective function may be to

APO SNP Optimizer

A

minimize costs
or
maximize profits

205
Q

Transportation Lanes are

A

unidirectional.

-That is, a valid lane from location 1000 to 2400 is not assumed to be the same as a lane from 2400 to 1000.

206
Q

Transportation lanes do not

A

exist in ERP!!

207
Q

This master data is not created through the CIF even though there is a Quota Arrangement in ERP.

A

Quota Arrangement-Master data

208
Q

Quota Arrangement

A
  • Locations
  • Distribution Centers
  • Right mouse click on DC & choose ‘Quota Arrangements –> Incoming Quota Arrangement.’
209
Q

The inbound Quota Arrangement is a

A

sourcing decision data where allocations across multiple sources (suppliers) can be defined.

210
Q

The Supply Chain Engineer is used primarily to view and manage

A

master data

211
Q

The supply chain engineer is a

A

graphical tool.

212
Q

Which items can be viewed and managed through the Supply Chain Engineer?

A
  • Transportation Lane
  • Transportation Service Provider
  • MRP Area
  • Transportation Zone.

–NOT: Bill of Material Master (b/c not involved in this area)

213
Q

Work areas in the Supply Chain Engineer are used to

A

filter master data in models.

214
Q

Characteristics

A

For APO DP, a characteristic is a organizational or master data field.
For example, material (product) or plant, customer, or sales organization.

215
Q

Characteristics are used to

A

determine the level at which you are forecasting.
For example, a sales rep may need to create a forecast at the sales-org-product-customer level. Product, sales org., and customer are all characteristics.

216
Q

Historical data is stored in

A

the APO BW info cube and is organized by dimensions (characteristics).

217
Q

once historical data is stored, it may be analyzed to create historical facts of characteristic combinations.

A

Example:

  • info cube contains the following dimensions (characteristics): product, location, customer, sales organization, date.
  • Performing an analysis of the historical data yields the combination: Product P-101 was sold to customer 12345 by sales org ABCD and shipper at location 1000.
218
Q

Characteristic Value Combinations (CVC)

A

represent the master data for APO DP.

219
Q

Characteristic value combinations (CVCs) are stored

A

in a Planning Object Structure (POS).

220
Q

APO Demand planning supports the following types of forecasting methods

A
  • univariate (statistical)(time series)
  • multiple linear regression (MLR) (causal analysis)
  • composite)
221
Q

Key figures are

A

numeric or quantitive data that are useful for forecasting purposes.

222
Q

Key figures usually appear as

A

rows in spreadsheet looking screens.

223
Q

Planning areas

A

are that part of LiveCache where we store our characteristics, key figures, as well as planning books, data views, and planning object structures.

224
Q

Aggregation

A

is the automatic function by which key figure values on the lowest level of detail are summed at run time and displayed or planned on a high level.

225
Q

Disaggregation

A

is the automatic function by which a key figure value on a high level is broken down to the detailed level.

226
Q

proportional factors are used

A

to disaggregate the forcast

227
Q

proportional factors are derived from

A

historical data and represent ratios or percentages.

228
Q

Forecasting prerequisites

A

1) master data in the form of characteristic value combinations (CVC)
2) selection ID-what to forecast
3) forecast profile-how to forecast.
4) historical data.

229
Q

univariate forecasting is used in APO when

A

you have one independent variable.

230
Q

Master forecast profile

A
  • planning area assignment
  • definition of key figure to be forecast.
  • definition of the past and forecast horizons.
  • procedural specification for the following forecasting types:
  • -univariate forecasting
  • -multiple linear regression
  • composite forecasting
231
Q

Multiple linear regression (MLR)

A

-use MLR to determine how a dependent variable, such as sales, is connected with independent variables called casual variables, such as prices, advertising, and seasonal factors.

232
Q

MLR uses historical data as a basis to calculate the

A

regression coefficients, b, for causal analysis.

233
Q

The composite forecast

A
234
Q

forecasting the demand for new products can be difficult since they have no previous historical data. additional forecasting the “end-of-life” for products being phased out is important from an inventory management point of view.

A

plm

235
Q

To make a forecast for a new product that has no previous sales history, what feature of APO DP could be used?

A

product life cycle (PLM).

236
Q

Product life cycle (PLM)

A

you define phase-in and phase-out profiles to model the lifecycle of old and new products.

237
Q

promotion planning

A
  • Promotions can be created to apply patterns to the demand forecast.
  • The patterns can be stored in the promotion pattern library and used, as required (multiple times).
  • The function is also available to detect promotion patterns in historical data and to create promotion patterns based on them
  • promotions can have major impact on consumer behavior
  • you can plan promotions or other special events separately from rest of forecast.

OPRE 6369- Supply Chain Software (2 decks)

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