Enhanced Aggregated Planning and Disaggregation Improves RCCP Planning Accuracy

  • by Balaji Gaddam, Senior Director, SAP SCM Center of Expertise
  • June 18, 2012
The enhanced aggregated planning business function is for planning high-data volume scenarios in SAP Advanced Planning & Optimization (SAP APO). This function is useful in Retail, Apparel, and Footwear planning scenarios that have many product variants. You can use enhanced aggregated planning to plan at the product group level instead of product level for rough-cut capacity planning (RCCP) and material requirements planning. It is useful for executing constraint-based planning in Capable-to-Match (CTM) and disaggregating the supplies consistently according to demands.
Key Concept
Using enhanced aggregated planning, you can execute constraint planning in Capable-to-Match (CTM) for the complete supply chain network. With enhanced aggregated planning in CTM you can create a supply plan based on capacity and material constraints. The CTM enhanced disaggregation function enables you to use fixed pegging relationships to disaggregate the supplies according to the original demands. In the case of excess supplies, you can use predefined quotas to disaggregate the supplies.

In certain industries, high volumes preclude executing detailed rough-cut capacity planning (RCCP) for all stock keeping units (SKUs) across a two-year time horizon. SAP SCM’s aggregated planning functionality provides the flexibility to execute RCCP at the aggregate level instead of SKU level. In addition to planning at an aggregate level, you can use the enhanced disaggregation function to disaggregate the constrained RCCP at an aggregate level to the SKU level.

 

I use the example of the manufacturer of shirts to explain this functionality. The product group is SHIRT with multiple SKUs: the sizes large, medium, and small. If you have a capacity constraint, enhanced disaggregation can allot the available resources according to a percentage of the original demands for each size. If there are excess resources, it can allot them by percentage of the original quota as well. That means you can plan for the product group at the header level over a two-year period instead of planning for sizes. Then you can allocate the materials supply to sizes as needed.

Balaji Gaddam

Balaji Gaddam is a team lead of SAP SCM Center of Expertise and is based out of SAP headquarters in Newtown Square, PA. Balaji recently celebrated his 10-year anniversary at SAP and has been involved with SAP SCM/CTM solution development, implementation, and support for the last eight years. He is the author of Capable to Match (CTM) with SAP APO, available at www.sap-press.com. You find Balaji on LinkedIn at http://www.linkedin.com/pub/gaddam-balaji/5/210/454.

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