shelf life planning in apo

Shelf Life Planning in APO

Eric Simonson - Solutions Management

April, 2010

Shelf Life for SNP in SCM 5.1 (SCM 2007)Shelf Life for SNP in SCM 5.1 (SCM 2007)

Shelf Life Enhancements in SCM 7.0

Shelf Life in SNP

Shelf Life Propagation

Shelf Life Display and Alert

Shelf Life in SNP

Shelf Life Data

General Information

The following information relates to the release combination ERP 2007 (ECC 6.0

component) / SCM 5.1.

Part of the described shelf life functionality is not contained in core release ERP

2007 but is provided in enhancement package EhP3. Customers are required to use this enhancement package, along with activating the business function

SCM_GEN_02, to switch this functionality on explicitly.

© SAP 2007 /

Shelf Life in SNP 5.1 – Developments

� Display of shelf life data

� Display shelf life data of demands, receipts and stocks

� Display of data on expiring/wasted goods and shelf life based stock balance

� Propagate shelf life data

� Propagate shelf life data of demands (for example: customer orders) across the supply chain

© SAP 2007 /

�Alert on shelf life data

� Generate alerts for goods that will expire or for shelf life mismatches between demands and stocks

� Integrate shelf life data to ERP

� Integrate shelf life data of purchase requisition to ERP

� Use shelf life data for further processes in ERP (purchase order, batch determination for delivery creation)

Shelf Life in SNP



Shelf Life in SNP

Shelf Life Data

ERP Master Data

The following shelf life fields exist in the material master of ERP (transaction

MM03, tab Plant Data / Stor. 1):

© SAP 2007 /

ERP Master Data

The following shelf life fields exist in the material master of ERP (transaction

MM03, tab Plant Data / Stor. 1):

� Minimum Remaining Shelf Life

Minimum amount of time for which the material must keep upon goods receipt for

the goods receipt to be accepted by the system.

� Total Shelf Life

Period for which the material will keep in total, that is from the date of production

© SAP 2007 /

Period for which the material will keep in total, that is from the date of production

to the shelf life expiration date.

� Period Indicator for Shelf Life

Determines the time unit of the above fields.

� Rounding Rule for Shelf Life

Expires material at the start or end of the period.

� Storage Percentage

How much of the minimum remaining shelf life must be left if the material is to be

sent from one plant to an other.

SCM Master Data

The following shelf life fields exist in the product master of SCM (transaction /SAPAPO/MAT1, tab Properties):

© SAP 2007 /

SCM Master Data

The following shelf life fields exist in the product master of SCM (transaction

/SAPAPO/MAT1, tab Properties):

� Planning with Shelf Life

This flag determines whether shelf life functionality is considered for this product.

Set by CIF if a value is maintained in field “Total Shelf Life“ of ERP.

� Shelf Life

© SAP 2007 /

Filled via CIF from field “Total Shelf Life“ of ERP. Value is always in days.

� Maturation Time

Required period between production of the material and its use.

Currently not filled via CIF. Value is always in days.

SCM Master Data (continued)

� Required Minimum Shelf Life

Minimum shelf life a stock/receipt element must have to cover a demand.

Filled via CIF from field “Minimum Remaining Shelf Life“ of ERP. Value is always in

days.

� Required Maximum Shelf Life

Maximum shelf life a stock/receipt element must have to cover a demand.


© SAP 2007 /


� Rounding Rule

Filled via CIF from fields “Rounding Rule for Shelf Life“ and “Period Indicator for Shelf

Life“ of ERP.

� Percentage Remaining Shelf Life

Filled via CIF from field “Storage Percentage“ of ERP.

Stocks

Stocks in ERP can carry shelf life data by assigning batches.

(This is only possible if flag “Batch Management“ is set in the material master.)

A batch is a quantity of the material with certain properties that is held in stock separated from the other quantities of the material.

The batch contains the date of

manufacture, the shelf life expiration

© SAP 2007 /

manufacture, the shelf life expiration

date and the ‘available from’ date

(day after end of maturation time).

These attributes can be entered

manually. If the shelf life expiration

date is missing it is calculated from

the date of manufacture and the total

shelf life from master data.

Stocks

To transfer shelf life data of stocks to SCM the relevant classes, characteristics

and batches have to be included in the integration model.

(See consulting note 751392)

In SCM, shelf life of stocks can be displayed in /SAPAPO/RRP3.

© SAP 2007 /

Demand Elements

� Sales Orders in ERP can carry shelf life data by assigning batch search

strategies.

Shelf life data of sales orders can be transfered to SCM. For details, see Note

391018 (configurable materials) and Note 483576 (non-configurable materials).

�When Forecasts are released from DP to SNP the default shelf life requirements

© SAP 2007 /

�When Forecasts are released from DP to SNP the default shelf life requirements from product master data are attached.

This logic can be changed by implementing:

BAdI= /SAPAPO/SDP_RELDATA with Method= CHANGE_RELDATA.

In this method, arbitrary shelf life requirements can be set (e.g., customer-dependent values).

Purchase Requisitions

From ERP 2007 (EhP3) on, purchase requisitions carry a minimum remaining shelf life field that describes the minimum amount of time for which the material must keep

at time of goods receipt (delivery date).

© SAP 2007 /

Purchase Orders

Purchase orders carry a minimum remaining shelf life field that describes the

minimum amount of time for which the material must keep at time of goods receipt.

When a new purchase order is created in ERP, the minimum remaining shelf life is filled from the corresponding field of the purchase requisition.

The minimum remaining shelf life can be changed manually (in PO change

transaction ME22N).

© SAP 2007 /

transaction ME22N).

Shelf life data of purchase orders can be transfered to SCM (but not changed there).

Purchase Orders

© SAP 2007 /

Conversion SNP → PP/DSConversion SNP → PP/DSConversion SNP → PP/DSConversion SNP → PP/DS

When converting orders (planned orders,stock transfers, purchase requisitions)

created in SNP to PPDS the shelf life data is kept.

This was done by enhancing heuristic SAP_SNP_SNGL.

© SAP 2007 /

� Transaction /SAPAPO/RRP_SNP2PPDS

Shelf Life Integration SCM -> ERP (EhP3)

� Shelf life attributes added to the purchase requisition in ERP.

� Display and change shelf

life attributes in the

purchase requisition.

� Transfer the shelf life

attributes from the purchase

© SAP 2007 /

attributes from the purchase requisition into the purchase

order.

� Use the shelf life attributes at batch determination if an

outbound delivery is created

for a stock transport order.

Shelf Life in SNP



Shelf Life in SNP

Shelf Life Data


General Idea:

� Use of dynamic pegging to find stocks/receipts satisfying given demands

� Starting from sales order / forecast level:

Propagation of shelf life requirements of demands to corresponding receipts (and their

dependent demands), taking into account transportation and production durations

� Use propagation report as a tool that propagates shelf life data of demands (for example,

customer orders) along the supply chain after the planning run

© SAP 2007 /

Shelf Life Propagation - Function

� Transaction= /SAPAPO/SNP10

� Report= /SAPAPO/RSNP_SHLF_PROP

� BAdI= /SAPAPO/SNP_SHLF_PROP Method= PROD_PROPAGATE

can modify shelf life data propagated

� BAdI= /SAPAPO/SNP_SHLF

© SAP 2007 /

Method= IO_MATCHING

can define your own logic for finding corresponding demands and receipts (other then dynamic pegging)

Shelf Life Propagation - Shelf Life Data in the

Demand (Forecast) Element

© SAP 2007 /

Shelf Life Example: Situation After Planning,

Before Propagation

CPF2 CPF3

T-CPF00

Stock ForecastStock

Transfer

© SAP 2007 /

600-100

13 days

≥ 5 days

-600

600

≥ 10 days

20 days

2 days

(+ 3 days

weekend)

-200≥ 10 days

-300≥ 15 days

150

18 days

300

32 days

Shelf Life Example: Situation After Propagation

(Without Split)

CPF2 CPF3

T-CPF00

Stock ForecastStock

Transfer

© SAP 2007 /

600-100

13 days

≥ 5 days

-600

600

≥ 20 days

15 days

2 days

(+ 3 days

weekend)

-200≥ 10 days

-300≥ 15 days

150

18 days

300

32 days 300

300 missing

Shelf Life Propagation – Results without Split

during Propagation (batches)

© SAP 2007 /

Shelf Life Propagation – Results without Split

during Propagation (shortage)

© SAP 2007 /

Shelf Life Example: Situation After

Propagation (With Split)

CPF2 CPF3

T-CPF00

13 days

Stock ForecastStock

Transfer

5 days

© SAP 2007 /

600-100

13 days

≥ 5 days

-200

200

≥ 15 days

10 days

2 days

(+ 3 days

weekend)

-200≥ 10 days

-300≥ 15 days

150

18 days

300

32 days

-100

100

≥ 10 days

5 days

-300

300

≥ 20 days

15 days

100

150

50

250

50 missing

Shelf Life Propagation – Results with Split during

Propagation (batches)

© SAP 2007 /

Shelf Life Propagation – Results with Split during

Propagation (shortage)

© SAP 2007 /

Shelf Life in SNP



Shelf Life in SNP

Shelf Life Data

Display of Shelf Life Data I

� Use planning book in SNP Interactive Planning to display shelf life data

� Macro-based display & alerting solution

� Display of shelf life based stock balance

� Display of projected wastage quantities, “How much of the product has to be

disposed based on the current plan?“

� Raise alerts if the receipts and demands do not match with regard to their shelf

life data.

© SAP 2007 /

life data.

� Data on expiring/wasted goods and the shelf life based stock balance per

location product are displayed in new key figures of the planning table

� Data for individual orders (maturation date, expiration date, minimum /

maximum required shelf life date) can be displayed in the detail view.

Display of Shelf Life Data II (Key Figures)

The system uses macros to calculate the following key figures that contain shelf life information:

� Expiring Quantity- Displays the total quantity of stock or receipt elements in a bucket that are no longer usable from this bucket on.

� Projected Wastage Quantity- Displays the portion in key figure “Expiration Quantity” that needs to be discarded in the current demand situation (un-pegged supply).

© SAP 2007 /

supply).

� Stock on Hand (Shelf Life)- Displays the total quantity of stock or receipt elements in a bucket that have not been consumed by demand up to, and including this bucket. Consumption follows the shelf life logic that stock or receipt elements must meet the shelf life requirements of demand.

� Supply Shortage (Shelf Life)- Displays the total quantity of demand elements in a bucket that have not consumed stock or receipt elements up to, and including this bucket. Consumption follows the shelf life logic that stock or receipt elements must meet the shelf life requirements of demand.

Alert on Shelf Life Data I

� Generate alerts after carrying out shelf life propagation. Check for goods

that will expire soon and for mismatches between shelf life requirements and

actual shelf life.

� Both Dynamic & Database Alerts are available.

© SAP 2007 /

Other Helpful OSS Notes

Note 579556- Taking shelf life into account with SNP optimizer (prior to SCM 5.1)

Note 751392- Shelf life R/3 -> APO, settings in R/3 system

Note 1072022- Shelf life in SNP

© SAP 2007 /

Note 1072022- Shelf life in SNP

Note 1109941- Switches in business function SCM_GEN_02

Note 759599- LEFO pegging strategy

Shelf Life for SNP in SCM 5.1 (SCM 2007)Shelf Life for SNP in SCM 5.1 (SCM 2007)

Shelf Life Enhancements in SCM 7.0

Shelf Life Planning with CTM Shelf Life Planning with CTM Shelf Life Planning with CTM Shelf Life Planning with CTM –––– SNP or PPDS SNP or PPDS SNP or PPDS SNP or PPDS

Mode Mode Mode Mode

Maturation Time

Demand

Receipt

Max. Shelf LifeMin. Shelf Life

1. 2. 3.

� CTM respects all Shelf Life Restrictions

Maturation Time Max. Shelf Life

1. Maturation Time of Supply before Due Date of Demand

2. Expiration of Supply after minimum required Shelf Life of Demand

3. Expiration of Supply before maximum required Shelf Life of Demand

Shelf Life restrictions:

� Maturation Time: Required period between production of the material and its use� Required Minimum Shelf Life: minimum shelf life a stock/receipt element must have to cover a

demand� Required Maximum Shelf Life: maximum shelf life a stock/receipt element must have to cover a

demand

Shelf Life Propagation in PPDS for 7.0

� Motivation

� Previously the shelf lives of the receipts and demands are determined according to the

values at the product or the batches

Sales Order FP

STR FP

Shelf Life

Req. Min. Shelf Life

FP in DC1

FP in PL1

� In case of multiple locations, the

shelf life of the stock transfers at

the source location should

respect the shelf life of the sales

order at the destination location.

Planned

Order C1

Planned Order FP

C1 in PL1

Stock C2

C2 in PL1

In SCM 5.1

order at the destination location.

� If the component is active in the

finished product and it shouldn’t

violate the shelf life restriction of

the finished product


� Objective

� The shelf lives are propagated

– Takes the actual date into consideration, not just the days

– Across location

– Across production

levels

Sales Order FP

STR FP

Shelf Life

Req. Min. Shelf Life

FP in DC1

Planned Order C1

Planned Order FP

FP in PL1

C1 in PL1

Stock C2

C2 in PL1

Propagate Req. Shelf Life along

Network

Propagate Req.

Shelf Life along

Production

In SCM 7.0


� Features

� A new heuristic SAP_PP_025 to propagate the required shelf life from the pegged

requirement to the dependent demand

� Can reset the required shelf life of non pegged orders to their original value

� Propagation of the required shelf life from the finished product to the subsequent

production levels

� Transfer of the required shelf life to the ERP stock transfer order

� In case of multiple pegging the smallest of maximum required shelf life and the largest

of minimum required shelf is propagated (Most conservative).

� Limitations

� No shelf life planning is done during the propagation.

SAP Supply Chain

Management

Eric Simonson

[email protected]

© SAP 2007 / PP/DS Overview 44

www.sap.com/scm

Q & A

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