public frp parameter optimization settings · 2016-07-11 · frp parameter optimization settings...

Wilfried Baumgartner / Hans Georg Kloep, SAP

July 6, 2016

FRP Parameter Optimization SettingsPublic

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the

permission of SAP. This presentation is not subject to your license agreement or any other service or subscription

agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation

and SAP's strategy and possible future developments, products and or platforms directions and functionality are all

subject to change and may be changed by SAP at any time for any reason without notice. The information in this

document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This

document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied

warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational

purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this

document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,

which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Legal disclaimer


Agenda

Lost Consumption Correction

Promotion

Fallback Scenario

Promotions

Newly listed products

Safety amount calculation for DIF schema

Improved exception handling

Earlier generation of promotion exception

New Exception Forecast exceeded consumption

Overview of recent improvements

New notes and additional information

Lost Consumption Correction


Lost Consumption Correction – Promotional values

consumption declines to 4 pieces due to out of stock situation in

week 8 from Wednesday to Saturday

Normally for correction the average weekly consumption of surrounding

four weeks will be taken into account.

Local mean is: (9+10+8+9) / 4 = 9

Correction value for week 8 is

consumption +

(local mean / number of consumption days per week) * number of days with zero stock

4 + (9 / 6) * 4 = 10Buy 1 Get 1

promotion

in week 7 Correction value would beconsumption +

(local mean / number of consumption days per week) *

number of days with zero stock

4 + (15 / 6) * 4 = 14

To mitigate the risk of too high corrected

consumption value there is a new customizing

setting in place

‘Ignore Periods with Boolean DIFs for Lost

Cons.Calc.’ (forecast profile)

to skip promotional weeks from local mean


Description

blank: All periods are considered for the calculation of a local mean value, regardless of existing Boolean DIFs

‘X’: Periods associated with Boolean DIFs are not considered for the calculation of a local mean value

Lost Consumption Correction – Promotional valuesEnhancement Forecast profile

Please see Notes:

- 2287903

- 2287870


Lost Consumption Correction - Fallback

consumption declines to 4 pieces due to out of stock situation in week 8

Normally for correction the average weekly consumption of two weeks

before will be taken into account

If these weeks cannot be considered (e.g. Ignore DIF applies)

there is a fallback strategy in place:

Incomplete weekly goods movement value * number of

consumption days in the respective week / number of

consumption days in the respective week without a zero stock

4 * 6 / 1 = 24

So corrected consumption value would be 24 and would heavily

influence forecast for week 9.

To mitigate the risk of too high corrected consumption

value there is a new parameter in place:

Prepr.ZeroStockCorrect.Fallback.MaxFactor

If parameter is set e.g. to 2

the corrected consumption value would be 4 * 2 = 8


BAdI-controlled /FRE/FRPCONF_PAR

Prepr.ZeroStockCorrect.Fallback.MaxFactor

Value range

Decimal >= 1.0

Default = 7 (Compatibility)

Recommended = 2

Description

Corrected Consumption for fallback scenario Zero Stock = Consumption* MaxFactor

Lost Consumption Correction - FallbackParameter Prepr.ZeroStockCorrect.Fallback.MaxFactor

Please see Note:

- 1644851

- 1656951

- 1673500

Promotions


Consider promotion for newly listed product

So far a promotion (and resulting high

consumption figures) could not be considered

for newly introduced products.

Newly

introduced

product starts

with promotion

in week 1

To mitigate the risk of too high forecast values

there is a new DIF customizing setting planned.

The promotion can be considered separately for

forecasting.

This leads to lower mean forecast and far more

important to lower max forecast.

Thus mean forecast and especially

max forecast are very high.

So the forecasting model has a high variance


Consider promotion for newly listed productPlanned enhancement DIF Identifier Customizing

A new setting is planned to define whether or not a DIF occurence of DIF Type ‚Boolean‘ is

treated separately.

Safety Amount Calculation


Consider DIF Schema Priority for Safety Amount Calculation

Increase Safety Amount during DIF periods by using the highest prioritized DIF Schema. This means the safety

amount will always be as high or higher than the safety amount during the non DIF period. If feature is not active it

could be that DIF schema is insignificant and therefore safety amount is not higher.

Consider Daily DIF Schema for Safety Amount CalculationThe safety amount might be too high in previous releases if a DIF schema was set only for a part of a week. This

can be avoided by turning feature on. Then safety amount for DIF schema will be considered only for the days in

which the DIF occurrence is valid.

Safety Amount Calculation – Consideration of SchemasEnhancement Forecast profile

Please see Notes:

- 2287903

- 2287870

Improved Exception HandlingEarlier generation and new forecasting exception


Improved Exception HandlingPlanned enhancement of FRP Exception profile

Description

So far following exceptions were only created on order days

– 218 Effect of (loc.prod. level) DIF in week unknown

– 222 Effect of (location level) DIF in week unknown

– 830 Effect of (loc.prod. level) DIF in week unknown; factor used

– 832 Effect of (location level) DIF in week unknown; factor used

Now, these F&R exceptions can be issued also for location products which do not have an order date at the

current FRP planning date. This allows you to react before the next order proposal is created.

Product gets promotion

„Flyer“ for the first time


Improved Exception HandlingParameter Excpt.PredWarn.OnlyRaiseOnOrderDates

BAdI-controlled /FRE/FRPCONF_PAR

Excpt.PredWarn.OnlyRaiseOnOrderDates

Value range

0/1

Default = 1 (Compatibility)

Technical integration

As long as the customizing does not exist the functionality can be used by a BAdI implementation

Please see Notes:

- 2093784

- 1673500


Improved Exception HandlingPlanned new Exception «Forecast exceeded consumption»

The exception indicates that a weekly

forecast value exceeds the highest

consumption peak threshold. This

threshold is calculated as the highest

consumption peak times the

multiplicative factor f plus the

absolute distance d.

Factor: e.g. 1.40 This means Forecast has to be 40% higher than highest consumption in the past

Absolute distance: e.g. 2 This is to avoid false alerts for ultra slow sellers

+ 2 = 226

For week 8 with a forecast of 289 you will get the new exception

160 * 1.40 = 224


Improved Exception HandlingPlanned enhancement of FRP Exception profile

Description

Controls which factor is applied to the highest consumption peak before comparing it with the maximum value of

the corrected weekly forecast.

Controls which offset is added to the highest consumption peak before comparing it with the maximum value of

the corrected weekly forecast.

Further Recent ImprovementsOverview and further information



Announcements of SAP F&R improvements and important corrections

Note 2335048 is used to announce and share information about F&R improvements and recommendations.

The note will be kept updated.

Please check this note regularly for further information!

How to change BAdI-controlled default settings?

Note 1673500 provides you with information about the different types of FRP configuration parameters.

The note provides you with example implementations of the 3 BAdIs which can be used to change

BAdI-controlled default settings.

Table /FRE/FRPCONF_PAR

BAdIs:

– FRE/FU_FRP_BADI_002->CHANGE_PARAMETERS

– FRE/FU_FRP_BADI_004->LOCATIONPRODUCT_PARAMETERS

– FRE/FU_FRP_BADI_005->PROFILE_BADI_CONFIG



Forecast calculation

Multiple additive correction DIF

– Note 2229974

Traceability

Order Balancing

Additional F&R exceptions

– Notes 2094788, 2115338

Enhancement concept Table /FRE/MATLOC_FRP

Customer-specific data imported from the FRP location environment can be persisted via BAdI at table

/FRE/MATLOC_FRP

Example: Additional calculation details for location products without order proposal

– Note 1990393



Contract handling

Contract check is applied on

Order proposal level at transaction /FRE/RWB (Replenishment Workbench)

Location level at the FRP run

– Note 2116445

Substitution for Cross-Docking (Retail and F&R)

Cross-Docking scenario is supported for

Quantity Control ‘SubstArt with Total Quantity’

– Note 2245683

Thank youHans-Georg Kloep

Product Owner (IMS)

Development Architect

[email protected]

Contact information:

Wilfried Baumgartner

Senior Analytics Specialist

[email protected]

Appendix


Multiple additive correction DIF

Consideration of e.g. ‘Weather Forecast’ as additive forecast correction

DIF customizing

Multiple definition of Additive Forecast

Correction is supported

Same ‘Rule for overlapping’ is required


Traceability 1

Order Balancing – additional F&R exceptions


Traceability 2

SAP Enhancement concept Table /FRE/MATLOC_FRP

BAdI: Evaluation of FRP Inbound Files (/FRE/FU_FRP_BADI015 )

A BAdI for the FRP inbound is provided in addition to support the customer-specific storage of data from

the FRP data environment in /FRE/MATLOC_FRP.

Example: Missing calculation details for products without order proposal the net demands for products

which were not ordered for any reason could be enhanced


Contract Handling

OP based contract check

Logic of the check not changed

Logic applied on OP level at /FRE/RWB

Logic applied on location level at FRP

Logic applied on item level /FRE/PWB


Substitution for Cross-Docking

Consideration of Qty Ctrl ‘SubstArt with Total Quantity’

Customizing: Article Substitution - Application-Specific Control

Maintenance w/o assortment

Substitution relationships

‒ Follow-Up Article

‒ Replacement Article

Quantity control

‒ ‘SubstArt with Total Quantity’ only


Forecast Calculation: DIF Schema

While time periods with selected demand influences a specific safety amount has to be calculated:

Periods with occurrences of certain DIF: DIF Schema

A DIF Schema is linked to one or several DIFs (e.g. promotion, calendar event).

Periods with high season sales: High Season Schema

High Season Schema will be detected by the system automatically.

Separate target service levels can be defined in Service Level Profile for every DIF Schema and the

High Season Schema (optionally by ABC classification and by selling class).

Per time period a Schema is valid and for regular periods specific variances will be calculated.

Use of DIF Schema and High Season Schema can be switched on/off in Forecasting Profile.

Examples:

High season sales during limited period of the year (sun blocker, snow shovel,…)

High availability for promotion periods required

One time a year sales (special Christmas or Easter products)



Without DIF Schema:

No different variance

is determined.

No different service

level can be defined.

Safety amount for

promotion periods

and for periods

without promotions

are the same.

Safety

Amount



With DIF Schema:

Different variance is

determined.

Different service level

can be defined.

Safety amount for

promotion periods

and for periods

without promotions

are different.

Service Level

90%

Service Level

60%


Service Level = 90%

Service Level =

60%


With High Season

Schema:

Different variance is

determined.

Different service level

can be defined.

Service Level for

seasonal peaks are

higher and will be

detected by the

system automatically.



Known problems with safety amount calculation:

Because while a promotion out-of-stock situations have to be avoided a much higher service level is defined for

relevant DIF Schema (e.g. 95% vs 70%).

However the variance while promotional time periods in the past was not significantly different to the variance in

the non-promotional time periods. Therefore a specific safety amount calculation will be skipped and the regular

service level will be considered.

Instead of higher safety amount while promotion time period regular safety amount is used.

Same problem can appear, having specific service level for High Season Schema.

Several DIF Identifier are assigned to a DIF Schema. For every DIF Identifier exact one week has been

observed (e.g. DIF A one week with 10, DIF B one week with 20, DIF C one week with 40).

A much higher service level for DIF Schema is defined (e.g. 95% vs 70%).

The variance calculation is done separately per DIF Identifier. The determined variances per DIF Identifier

afterwards are summed up. Because every DIF Identifier only has been observed once for one week the

variance per DIF Identifier is zero: The variance for the DIF Schema is zero.

Instead of higher safety amount while promotion time period no safety amount is considered, even if we have

a safety amount for non-promotional time periods!



Known problems with safety amount calculation:

A promotion ends at the beginning of a week. The relevant DIF Identifier is assigned to a DIF Schema for which

a much higher service level is defined. Finally we have a much higher safety amount for non-promotional time

periods compared to promotional time periods.

However the higher safety amount is considered for the complete week, even if the promotion has been ended

at the beginning of the week.

Example: Safety amount per day while promotion is 5 units, but regularly it is 1 units only.

Week start is Monday. We have 7 sales days/week. The promotion ends on Monday (inclusive).

The promotion specific safety amount will be considered not only for Monday (+4 units), but for the complete

week (7 times +4 units). Finally we will have 24 units too much!

Of course the promotional effect only is considered for the promotion period (in our example for Monday only).

But this is not valid for the specific safety amount!

Probably too high stock after the end of a promotion.


© 2016 SAP SE oder ein SAP-Konzernunternehmen.

Alle Rechte vorbehalten.

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche

Genehmigung durch SAP SE oder ein SAP-Konzernunternehmen nicht gestattet.

SAP und andere in diesem Dokument erwähnte Produkte und Dienstleistungen von SAP sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der

SAP SE (oder von einem SAP-Konzernunternehmen) in Deutschland und verschiedenen anderen Ländern weltweit.

Weitere Hinweise und Informationen zum Markenrecht finden Sie unter http://global.sap.com/corporate-de/legal/copyright/index.epx.

Die von SAP SE oder deren Vertriebsfirmen angebotenen Softwareprodukte können Softwarekomponenten auch anderer Softwarehersteller enthalten.

Produkte können länderspezifische Unterschiede aufweisen.

Die vorliegenden Unterlagen werden von der SAP SE oder einem SAP-Konzernunternehmen bereitgestellt und dienen ausschließlich zu Informationszwecken.

Die SAP SE oder ihre Konzernunternehmen übernehmen keinerlei Haftung oder Gewährleistung für Fehler oder Unvollständigkeiten in dieser Publikation.

Die SAP SE oder ein SAP-Konzernunternehmen steht lediglich für Produkte und Dienstleistungen nach der Maßgabe ein, die in der Vereinbarung über die jeweiligen

Produkte und Dienstleistungen ausdrücklich geregelt ist. Keine der hierin enthaltenen Informationen ist als zusätzliche Garantie zu interpretieren.

Insbesondere sind die SAP SE oder ihre Konzernunternehmen in keiner Weise verpflichtet, in dieser Publikation oder einer zugehörigen Präsentation dargestellte

Geschäftsabläufe zu verfolgen oder hierin wiedergegebene Funktionen zu entwickeln oder zu veröffentlichen. Diese Publikation oder eine zugehörige Präsentation,

die Strategie und etwaige künftige Entwicklungen, Produkte und/oder Plattformen der SAP SE oder ihrer Konzernunternehmen können von der SAP SE oder ihren

Konzernunternehmen jederzeit und ohne Angabe von Gründen unangekündigt geändert werden.

Die in dieser Publikation enthaltenen Informationen stellen keine Zusage, kein Versprechen und keine rechtliche Verpflichtung zur Lieferung von Material, Code oder

Funktionen dar. Sämtliche vorausschauenden Aussagen unterliegen unterschiedlichen Risiken und Unsicherheiten, durch die die tatsächlichen Ergebnisse von den

Erwartungen abweichen können. Die vorausschauenden Aussagen geben die Sicht zu dem Zeitpunkt wieder, zu dem sie getätigt wurden. Dem Leser wird empfohlen,

diesen Aussagen kein übertriebenes Vertrauen zu schenken und sich bei Kaufentscheidungen nicht auf sie zu stützen.

http://global.sap.com/corporate-de/legal/copyright/index.epx

public frp parameter optimization settings · 2016-07-11 · frp parameter optimization settings...

Documents