SAP -pp or SCM

5 pts.
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SAP APO
I am in a decision making process of my industry scenario to map in SAP. My scenario is as below Sales region representatives input their requirement for 1 months in system as below Input is • region(in SAP it is route destination) • Qty • Material number • Selling price • Period Once they enter the data system should collect all the data from each regional and run a statistical calculation taken fast history and generate a unconstrained sales plan/regional for 18 months. It will be passed to a optimizer where in we will put the following constraints • Capacity of production line with respect to that material grade • Selling price (from input data) • Minimum allocation qty per region/Grade • Customer grading ABC, A is good C is worst • Inventory available in all region and production plant for that grade • Net back that material can fetch • One of the important sub assembly/intermediate material – availability for future months • Grade change over loss in USD. With the above constraint system should generate a region plan giving details of which material (grade wise) and qty Second output is the production plan telling which grade how much to produce and when Is it possible to do the above in normal SAP PP or we need to go for SAP SCM?

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hello

No PP is very limited, PP is suitable for simple deterministic planning that has simple rules. The minute you need to plan more complex issues such as customer grading and capacity of manufacturing facilities then ideally you should follow the SCM route.

In SCM you have two possibilities:

‘1 Using Demand planning with custom macro’s and routines to build your planning logic. Basically a super multi-level EXCEL

2 Apply SP CTM (Capable to Match) Logic which satisfies just about all of your requirements

regards
Pino

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