7. global available-to-promise version 1.0

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Advanced Planning in Supply Chains -Illustrating the Concepts Using an SAP APO Case Study

7 Global Available-to-Promise (global ATP)




7.1 ATP: Basics and Literature

7.2 Planning Tasks and Data for Frutado

7.2.1 Planning Tasks

7.2.2 Data7.3 Modeling the Frutado Planning Tasks and Implementation in Global ATP

7.3.1 Introduction to SAP APO Global ATP

7.3.2 Customization of Order Promising at the Frutado Company

7.3.3 Basic Global ATP Model and Implementation for Frutado

7.3.4 Extensions

7.3.5 Processing the Results

7.4 Global ATP Learning Units

Contents

Advanced Planning in Supply Chains 2











7.3.4 Extensions



Contents





• ATP quantities

• Time series of quantities available for new orders• In the Frutado case (MTS): Quantities of a certain finished product

• ATP quantities consider:

• Current inventory

• Already released production or purchase orders

• Planned but not yet released production or purchase orders

• Reservations for already promised customer orders





• Calculation of the Available-to-Promise Quantities


1 2 3 4

0 2

() 3 5 3 3

() 2 5

() 3 8 6 9

() 3 6 6 9

() 3 3 3

Table 7.1 Calculation of ATP quantities for 0 = 1




• Cumulated ATP quantities

• Total available quantity of a product for a certain date t

• ATP quantities

• Available quantity of a supply on a certain date t for new orders

(used in availability check!)

• Relationship between and

• = ∑ =

• = −












7.3.4 Extensions



Contents





• Order Promising:

• Decision on acceptance and delivery date of newly arrived orders• Refusal of some orders is possible

• Modes of Order Promising

• Real-time Order Promising (instant processing of new orders,

often used in MTS-Case)

• Batch Order Promising (processing of new order in certain timeintervals)

• Demand Supply Matching

• In case of short ATP quantities:

• Decision on late deliveries, substitution or even cancellation of

orders

• Substitution e.g. alternative product, alternative location (DC),

alternative Production Process Model (PPM)












7.3.4 Extensions



Contents





• Information Flows between SAP APO and the ERP


Figure 7.1











7.3.4 Extensions



Contents




7.3.2 Customization of Order Promising at the Frutado

Company

• Parameters for Global ATP


Figure 7.2











7.3.4 Extensions



Contents




7.3.3 Basic Global ATP Model and Implementation for

Frutado


Availability Check

• Check for sufficient ATP quantities

• Order requirements are matched with ATP time series

• Based on ATP quantities of requested location-product

• Procedure• Check for sufficient ATP not later than material availability deadline

(latest date at which order must be shipped to hold confirmed delivery date)

• Search for new possible confirmed date in case of shortage




Frutado

• Availability Check


Figure 7.3:

Calculation of the

material availability

deadline and logic of the

product availability check




Frutado


Rules-Based ATP Check

• Method for availability check with additional measures in shortagesituations

• Order of possible measures to be specified, e.g.

1. alternative products as substitutes,

2. alternative sourcing locations,

3. alternative PPM

4. etc.

• Rules-Based ATP check follows this specified sequence




Frutado

• Sequence for the Rules-Based Search


Figure 7.4

PPM











7.3.4 Extensions



Contents





• Overlapping functions in the Global ATP und Deployment modules

• Demand Supply Matching performed by the Deployment module fora batch of already promised orders

• Real-Time Order Promising performed by Global ATP for new orders








7.2.2 Data

7.3 Modeling the Frutado Planning Tasks and Implementation in Global ATP




7.3.4 Extensions



Contents





• Availability Check: Confirmation I


Figure 7.5: SAP-Screenshot Confirmation situation in scenario I




• Availability Check: Overview I


Figure 7.6: SAP-Screenshot Availability situation in scenario I




• Availability Check: Confirmation II


Figure 7.7: SAP-Screenshot Confirmation situation in scenario II




• Availability Check: Confirmation III


Figure 7.8: SAP-Screenshot Confirmation situation in scenario III



7 Global Available-to-Promise - Bibliography

• Ball, M. O.; Chen, C.-Y.; Zhao, Z.-Y. (2004) Available-to-promise, in: D.

Simchi-Levi; S. D. Wu; Z.-J. Shen (Eds.) Handbook of Quantitative

Supply Chain Analysis – Modeling in the E-Business Era, chap. 11,

Kluwer Academic, 447–483

• Dickersbach, J. (2009) Supply Chain Management with APO, Springer,

Heidelberg

• Fleischmann, B. (2008) Distribution and transportation planning, in: H.Stadtler; C. Kilger (Eds.) Supply Chain Management and Advanced

Planning, Springer, Berlin et al., 231–246

• Fleischmann, B.; Meyr, H. (2004) Customer orientation in advanced

planning systems, in: H. Dyckhoff; R. Lackes; et al. (Eds.) Supply chain

management and reverse logistics, Springer, Heidelberg, 297–321

• Kilger, C.; Meyr, H. (2008) Demand fulfillment and ATP, in: H. Stadtler;

C. Kilger (Eds.) Supply Chain Management and Advanced Planning,

Springer, Berlin et al., 181–198




7 Global Available-to-Promise - Bibliography

• Meyr, H. (2008) Clustering methods for rationing limited resources, in: L.

Mönch; G. Pankratz (Eds.) Intelligente Systeme zur

Entscheidungsunterstützung. Konferenzband zur Teilkonferenz der

Multikonferenz Wirtschaftsinformatik München, 26.02.2008-28.02.2008,

SCS Publishing House e.V., San Diego et al., S. 19–31

• Meyr, H. (2009) Customer segmentation, allocation planning and order

promising in make-to-stock production, OR Spectrum, vol. 31, 229–256• Pibernik, R. (2005) Advanced available-to-promise: Classification,

selected methods and requirements for operations and inventory

management, International Journal of Production Economics, vol. 93,

239–252

• Pibernik, R.; Yadav, P. (2009) Inventory reservation and real-time orderpromising in a make-to-stock system, OR Spectrum, vol. 31, 281–307

• Schwendinger, J. (1979) Master production scheduling’s available-to-

promise, in: APICS Conference Procedings, 316–330


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