Enhance Planning by Reducing CVCs
- by Shreekant W. Shiralkar, Global Head, SAP Analytics CoE, Tata Consultancy
- Bharat Patel, SAP BW System Manager, Bharat Petroleum, India
- July 15, 2008
Discover how you can streamline planning in SAP Advanced Planning and Optimization by using a Business Add-In that minimizes the amount of Characteristic Value Combinations uploaded into Demand Planning.
Characteristic Value Combination (CVC) represents the master data for demand planning. You can use a Business Add-In to reduce the number of CVCs while loading historical data into a planning area. This makes planning more efficient and reduces data redundancy in your Advanced Planning and Optimization system.
Planning for products with small sale numbers and low margins is not productive. It adds to the planning process
effort, piles up redundant data in the planning system, and can lead to forecasting for old and obsolete objects when
changes in the business occur.
You may need to modify historical data to make the planning process efficient by reducing planning to the least
possible values as well as to avoid redundancy of data. We will use a business scenario to showcase modification of
historical data to reduce Characteristic Value Combination (CVC). The method uses a Business Add-In (BAdI) to source
data from an InfoCube using custom code.
In our example scenario, a large share of the sales quantity — almost 80% — is sold by only 20% of
the selling agents. We therefore can plan for 80% of the business by planning for a few selling agents. The balance of
the selling agents, although large in number, contribute a low sales quantity. Therefore, planning for each one of them
would only add to the bulk of planning efforts without adding value to the planning accuracy. This supports the 80:20
rule or law of the “trivial many and the critical few.” We therefore decided to plan on each selling agent
contributing to 80% of the sales and plan for all other “small and sundry” selling agents using a
“dummy” selling agent code.
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