Advanced Planning in Supply Chains - Illustrating the concepts and methdology using SAP IBP

Todays business is characterized by supply networks comprising different partners (e.g. suppliers, distribution and retail centers, plants, customers). Activities within supply networks have to be well coordinated in order to avoid excessive inventories, inefficient capacity utilization and poor customer service. Over the recent years so-called Advanced Planning and Scheduling (APS) systems have emerged which complement traditional ERP systems. Their major characteristics are the use of mathematical optimization techniques and the integration into comprehensive supply chain management concepts. In this teaching module we will look more closely at SAP's advanced planning tool APO and use a case from the food industry, the fruit juice producer Frutado, to illustrate how integrated planning over various modules and decision levels can be realized. Content: 1. The Frutado case 2. Hierarchical Planning and the Supply Chain Planning Matrix 3. SAP APO - Module Matrix and General Principles 4. Demand Planning 5. Supply Network Planning 6. Production Planning and Detailed Scheduling 7. Deployment and Transportation Load Builder 8. Transportation Planning and Vehilce Scheduling 8. Global Available-to-Promise

After the module students will be able to: • Know the concepts and methodologies used in advanced planning • Apply the quantitative techniques used advanced planning for supply chain management • Understand the structure and methodology used in commercial Advanced Planning Systems (APS) such as SAP APO • Understand the interdependence of planning decisions made on different levels of the planning hierarchy • Model practical planning problems with SAP APO • Use and develop an advanced planning methodology for solving real-life problems in demand planning, supply network planning, production planning and detailed scheduling, available-to- promise, deployment and transportation, also involving several levels of the decision hierarchy

The module assessment consists of written exam (90 minutes) (50%). By answering the questions in the exam students show that they are able to understand and explain the concepts of hierarchical planning. Furthermore they show that they are able to apply these concepts in supply chain management and to relate them to practical problems. Furthermore students show their ability to develop and apply quantitative approaches with SAP APO for different planning problems. Additionally, two mid-term assignments are held (50%). The mid-term assignment takes place in the form of two assignments. For each assignment, the students must solve 5 to 10 exercises. These exercises cover various theoretical questions, development of mathematical models, applications of heuristics, as well as implementation in relevant software tools. Hereby, the students demonstrate that they are able to model and solve complex planning problems occurring in supply chain management using standard software. The students hand in their solutions in the form of slides (around 40 to 60 slides per assignment). The assignments are subsequently presented in class, in which each student is asked to present his/ her solutions to some of the exercises (approximately 5 minutes per student per assignment). Furthermore, students are expected to participate in the discussion of the solutions.

It is expected that participants have an interest in practical problems of production planning, scheduling and logistics, and the quantitative modelling of business problems. Participants should be familiar with Operations Research (OR) techniques. The modules "Management Science” and “Production and Logistics” or similar modules at other universities are a prerequisite. It is strongly advised that the participants have previously taken part in the modules "Basics of Advanced Planning and Supply Chain Management" and "Modelling, Optimization and Simulation in Operations Management" or similar modules at other universities.

The module consists of a lecture with integrated exercise sessions. During the lecture part of the contents are delivered through presentations and talks. The students are inspired to improve the acquired knowledge by studying the suggested literature, compiling reports and giving presentations. In the exercise sessions the students apply the acquired knowledge by solving exercises and working on a large scale SAP APO case study.