How to Manage a Distribution Plan in a Supply Chain Model in SAP APO When Supply Exceeds Demand

  • by Alok Jaiswal, Consultant, Infosys Limited
  • May 8, 2017
Learn the process flow and understand the various strategies you can use to carry out deployment of supply elements (receipts) in SAP Advanced Planning and Optimization (SAP APO) when the total supply is greater than the available demand.
Learning Objectives

Reading this article, you will learn about:

  • Deployment and the push rule
  • Master data configuration in SAP Advanced Planning and Optimization (SAP APO)
  • Simulation of push rule strategies
Key Concept
Deployment basically determines which distribution requirements can be met by the supply (receipt elements). Deployment strategies to be used depend on the business requirement. Different strategies available within a push rule are used when demand is less than supply. A push rule is a set of strategies used by SAP to deploy excess receipts from a source location.

SAP Advanced Planning and Optimization (SAP APO) supply network planning (SNP) helps to provide medium- to long-term planning for procurement of products to meet customer demand. SNP heuristics help to plan the constant flow of products through the entire network of the supply chain.

Deployment comes into the picture after an SNP run has completed and has generated receipt elements. In an ideal scenario if there are no changes to demand and supply, then deployment is irrelevant. However, in a practical scenario, both demand and supply vary from planned quantities and therefore the deployment run is important. Deployment typically works on confirmed production orders or stocks at the source location. Deployment determines which requirements can be covered by the existing supply. If the produced quantities (supply and demand) match actual plans, then the result of deployment is a confirmation of the supply network plan. If the available quantities are insufficient to cover the demand, the system makes adjustments accordingly.

Alok Jaiswal

Alok Jaiswal is a consultant at Infosys Limited.

He has more than six years of experience in IT and ERP consulting and in supply chain management (SCM). He has worked on various SAP Advanced Planning and Optimization (APO) modules such as Demand Planning (DP), Production Planning/Detailed Scheduling (PP/DS), Supply Network Planning (SNP), and Core Interface (CIF) at various stages of the project life cycle.

He is also an APICS-certified CSCP (Certified Supply Chain Planner) consultant, with exposure in functional areas of demand planning, lean management, value stream mapping, and inventory management across manufacturing, healthcare, and textile sectors.

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