APO210

AP210 Demand Planning
AP210
Demand Planning
? SAP AG
AG 2001
??SAP APO
??Release 3.0A
??April 2001
??Material number: 50041878
© SAP AG AP210 Preface-1

Copyright
Copyright 2001 SAP AG. All rights reserved.

No part of this publication may be reproducedor transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
All rights reserved.
? SAP AG 2001
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Curriculum Advanced Planner and Optimizer (APO)
Level 2 Level 2 Level 3

SAP R/3 SAP APO SAP APO
AP210 3 days
5 days Demand Planning

LO050
PP - Planning &
control of discrete
& repetitive AP215 3 days
manufacture AP010 2 days
Supply
SAP APO Overview Network Planning
AP205 2 days AP220 3 days

Level 2
Master Data Production Planning /
SAP R/3 Integration Detailed Scheduling
LO060 5 days AP230 2 days

Global Available
PP PI 2 days to Promise
BC555
Process Manufacture
liveCache
Administration
? SAP AG 2001
??The level 2 course, AP010, is the first of the SAP Advanced Planner and Optimizer training courses
and provides an overview of the individual SAP APO components. It is also a prerequisite for the
advanced level 3 SAP APO training courses.
??The level 3 courses improve on the knowledge base provided by AP010 and deepen your subject
area knowledge of the individual SAP APO components. The five level 3 courses consider the
following areas in detail:
Demand Planning, Integration, Supply Network Planning, Production Planning and Detailed
Scheduling, and Global Available to Promise.
??System administrators have the opportunity to take the course BC555 "LiveCache Administration"
which forms part of the Basis Administration Training curriculum.

Course Prerequisites
Prerequisites
? AP010 SAP APO Overview
Recommended
? LO935 Flexible Planning

? BW220 Business Information Warehouse –
SAP – OLTP Extraction
? SAP AG 2001

Target Group
?
Target group
? Project team members who are responsible for

configuring Demand Planning, and creating demand
plans
Duration
? 3 Tage
?
? SAP AG 2001
??Notes for the user

??The training materials are not teach -yourself programs. They complement the course
instructor's explanations. Your material includes space for noting down this additional
information.
??There may not be enough time to do all the exercises during the course. The exercises are intended
to be additional examples. Participants can also use them to deepen their knowledge after the
course.

Company Profile, Precision Pump Company
?
Precision Pump Company
? The Precision Pump Company was launched in 1971, and is the
market leader, selling a large variety of hi-tech standard pumps. It has
been indexed in the New Yorker stock index NASDAQ 100 since 1998.
Products
? The company’s product catalog includes turbo-molecular
?
pumps, rotational pumps, and membrane pumps
(to produce ultra high vacuums)
Customers
? From the electronics industry, semiconductor
industries, chemical technology, pharmaceutical
technology, and industrial technology, up to and
including vehicle manufacturers, and universities.
? SAP AG 2001
??The Precision Pump Company was launched in 1971, and is the market leader, selling a large variety
of hi-tech standard pumps. Its product catalog includes turbomolecular, centrifugal, rotational, and
membrane pumps. The customer base is wide-ranging. It consists of the electronics, and
semiconductor industries, chemical, and pharmaceutical companies, and others in the process
industry, but also includes vehicle manufacturers, and universities. The company recently became
ISO certified and has been indexed in the New Yorker stock index NASDAQ 100 since 1998.
??Especially in the rapidly growing business area of turbomolecular pumps, the company has shown
a clear rise in revenue over the past fiscal year: in the semiconductor industries countless steps,
from wafer manufacture, to the final chip, can only be made under high vacuum conditions. In this
area, there must be an ultimate pressure of < 10-10 mbar (i.e. ultrahigh vacuum).
??During the current fiscal year, the company is planning to enter the booming DVD growth market.
DVDs are a form of rewritable optical memory media. They are distinguished from the CD by
their large memory capacity. Coating equipment needed to create these rewritable DVDs also use
vacuum technology.
??Via intensive 'co-engineering' with manufacturers, Precision Pump Company has optimized a large
number of products to match these special requirements.

Plants and Distribution Centers
2500 DC Rotterdam
3000 New York 1000 Hamburg
Hamburg (main plant
plant and
and company
company
headquarters)
2300 Barcelona 2400 DC Milan

3800 Denver
Denver
Plant DC
? SAP AG 2001
??This slide shows the central section of the Precision Pump Company’s supply chain. All the
locations shown exist as plants in the connected OLTP (R/3) system:
??Three production plants:
1000 – Hamburg
2300 – Barcelona
3000 – New York
??Three Distribution Centers(DC)
2400 – Milan
2500 – Rotterdam
3800 – Denver

Sales from Sales Organizations Italy and Holland
2503 Norwegian
Import & Export
2502 Miller & Son,
London
2500 DC Rotterdam
P-102, P-103, P-104

P-102, P-103, P-104
80 %
1000 Hamburg (headquarters)
20 %
20 %
P-102, P-103, P-104

80 %
2300 Barcelona P-102, P-103, P-104 2400 DC Milan
1320 Naples
Export
2402 Jashanmal
? SAP AG 2001
Trading, Dubai
??This slide shows the distribution of finished products P-102, P -103 and P-104.
??DC 2400 can obtain finished products P-102, P-103, and P-104 from both plants 1000 (Hamburg)
and 2300 (Barcelona). Quota arrangement controls the amount obtained from each plant, in this case
80% from plant 2300, and 20% from plant 1000.
??DC 2500 can obtain finished products P-102, P-103, and P-104 from both plants 1000 (Hamburg),
and 2300 (Barcelona). Quota arrangement controls the amount obtained from each plant, in this case
80% from plant 1000, and 20% from plant 2300.
??Pumps P -102, P -103, and P -104 are delivered to customers 2502, and 2503 from DC 2500
(Rotterdam).
??Pumps P -102, P -103, and P -104 are delivered to customers 1320, and 2403 from DC 2400 (Milan).

Customers
? Customers of sales organization 1000 (Germany), distribution channel 10, division

00:
? 1000 Becker, Berlin (transportation zone DE-D000010000)
? 1032 Institute of environmental research, Munich (transportation zone DE-D000080000)
? 1320 Becker, Cologne (transportation zone DE-D000050000)
? 1031 Global Trade AG, Frankfurt (transportation zone DE-D000060000)
? 1030 DELA , Energy Trading Company mbH, Darmstadt (transportation zone DE-
D000060000)
? 1410 Pilar on the Neckar, Heidelberg (transportation zone DE-D000060000)
? 1321 Becker, Stuttgart (transportation zone DE-D000070000)
? Customers of sales organization 2400 (Italy):
? 2401 Naples Export, Naples (Italy)
? 2402 Jashanmal International Trading Co, Dubai (United Arab Emirates)
? Customers of sales organization 2500 (Holland):
? 2502 Miller & Son Trading Ltd., London (GB)
? 2503 Norwegian Import & Export Group, Oslo (Norway)
? Customers of sales organization 3000 (USA)
? 3140 Rainbow Chemical, Boston
? SAP AG 2001

Product Group
Product group
Pumps
APO APO APO

Pump Pump Pump Pump
Precision 101 Precision 102 Precision 103 Precision 104
P-100 P-102 P-103 P-104
(T-F1xx) (T-F2xx) (T-F3xx) (T-F4xx)
Pump P-100 only

maintained in R/3 and can
be transferred to APO for
Master Data integration
demo
Legend: (Demo material number for SD, consulting)

(training material number (xx = 00 - 20) for training)
? SAP AG 2001

Course Overview
Contents:
? Architecture & Integration
? InfoCubes
? Demand Planning Configuration
? Interactive Planning
? Forecasting Techniques
? Promotion Planning
? Demand Planning Release
? SAP AG 2001
© SAP AG AP210 1-1

Course Objectives
At the conclusion of this course, you will be able to:
? Configure Demand Planning in APO

? Create planning books and macros
? Create demand plans using univariate
forecasting, causal analysis, and composite
forecasting
? Utilize marketing and sales tools such as
promotion planning, lifecycle management, and
"like" modeling
? Release demand plans to the liveCache of APO
(Supply Network Planning and Production
Planning / Detailed Scheduling).
? SAP AG 2001
© SAP AG AP210 1-2

Course Content
Preface
Unit 1 Course Overview Unit 6 Forecasting

Unit 2 InfoCubes Unit 7 Promotions & Lifecycle
Planning
Unit 3 Configuration
Unit 8 Mass Processing
Unit 4 Planning Books & Macros
Unit 9 Conclusion
Unit 5 Interactive Planning
? SAP AG 2001
© SAP AG AP210 1-3

Course Overview Diagram
11 Course Overview
1
22 InfoCubes
33 Configuration
44 Planning Books and Macros
55 Interactive Planning
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 1-4

Business Scenario
? The Precision Pump company will implement APO

Demand Planning and use it to execute their
monthly finished product forecasting.
? Consistent planning allows you to enter the forecast
data on different planning levels and automatically
consolidate the data in the master forecast.
? SAP AG 2001
??Demand Planning is the application component in the Advanced Planner and Optimizer (APO) that
allows you to forecast market demand for your company's products. The result of APO Demand
Planning is the demand plan.
??Demand Planning is a complex, powerful, and flexible tool that supports your company's demand
planning process. User-specific planning layouts and interactive planning books not only allow you
to include different departments, you can also use them to include other companies in the forecast
creation process. With APO Demand Planning you can use statistical forecasting methods and
advanced macro techniques to do the following: - Create forecasts from sales history, based on many
different causal factors; - Test predefined, and user-defined forecast models, and forecast results; -
And use a consensus-based approach to consolidate the demand plans of different departments. You
can use forecast overrides and promotions to add marketing intelligence and management
adjustments. The seamless integration with APO Supply Network Planning supports an efficient
Sales and Operations Planning (S&OP) process.
© SAP AG AP210 1-5

Demand Planning Concept
Location
Aggregated actual data Future demand
Product hierarchy forecast
Sold-to party
Sales organization
Region
? Incoming order
value
? Statistical forecasting
? Quantities BW
? Collaborative forecasting
? Values
R/3 ? Promotions
? Invoice Excel
? Quantities Non-SAP system
? Values
?…
? SAP AG 2001
??The APO DP library of statistical forecasting and advanced macro techniques allows you to create
forecasts based on sales history as well as any number of causal factors, and use a consensus -based
approach to consolidate the results.
??Marketing intelligence and management adjustments can be added by using forecast overrides and
promotions.
??Aggregated actual data can be extracted from the R/3 system in exactly the same way as it can be
imported from BW, Excel, and legacy systems.
© SAP AG AP210 1-6

The Demand Planning Lever Effect
Demand Planning
Supply Network
Planning
Production
Planning
? SAP AG 2001
??Small changes made during Demand Planning cause large changes to be made during Production
Planning. The aim of Demand Planning therefore is to create sales quantity forecasts that are as
accurate as possible.
© SAP AG AP210 1-7

Influencing Factors in Demand Planning
Company 1 Company 2 Customer

Central Regional Central Regional Store
Promotion
Store
Promotion D/C Store Promotion
D/C
Promotion Season
Season
Sales
Sales Force
Force
Price
Price Price
Price
Weather
Weather
Advertisement
Advertisement
? Understanding demand in a dynamic business environment

? Multiple sources of demand plan data such as: internally created forecasts
based on history, forecasts from customers, or point of sale (POS) data
direct from retailers
? Managing all significant factors that influence demand
? Tracking and management of product lifecycles
? SAP AG 2001
??The complexity and competitive nature of today's business environment requires organizations to
consider many variables when developing a sales and operations plan.
??Multiple sources of demand plan data (e.g. manufacturer forecast is based on a distributor’s sales
history, and/or point of sales direct from retailer.)
??Factors influencing demand (sales force size, R&D expenditures, advertising expenditures, price,
promotions, seasonality.)
??Demand data can be exchanged with sales organizations, customers, and suppliers over the
Internet (Collaborative Demand Planning).
© SAP AG AP210 1-8

Range of Planning Functions
Planning Horizon
Demand Planning (DP)
Supply Network Planning (SNP)
Production Planning (PP)
Detailed Scheduling (DS)
Deployment
Transportation Planning
? SAP AG 2001
??Planning horizons vary depending on the tools used within APO and their application. In an extreme
case, demand planning might typically consider a 1-3 year planning horizon where TLB will have a
horizon of days.
??The seamless integration with APO components Supply Network Planning (SNP), and PP/DS
supports an efficient S&OP process.
© SAP AG AP210 1-9

APO Application Architecture
OLTP
OLTP (R/3)
(R/3) APO Information
Supply Chain Cockpit Warehouse
Warehouse
LIS, CO-PA (SAP BW)
HR, FI Demand Planning Historical
Planned Indep. data
Requirements
Customer
orders PP / DS
Supply Key
Global
Production Network Performance
ATP
Scheduling Planning Key figures
Inventory (KPIs)
Deployment
management
Transportation Transportation Planning

processing
? SAP AG 2001
??Aggregated actual data can be transferred to APO from OLTP, BW (Business Information
Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for
forecasting. The demand plan is created as a result of the forecast.
??You release the demand plan to Production Planning, which creates planned independent
requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand
plan to the operating system (OLTP) as planned independent requirements.
??Theseamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient
S&OP process.
© SAP AG AP210 1-1 0

Alert Monitor Integration
Exception messages
from forecasting
techniques and self-
defined macro alerts
DP
Cockpit Problem Resolution

Screen
PP/DS APO Example:
Alert Production Planning /
Detailed Scheduling
Repo-
Supply Network
SNP sitory Planning
Others Alert Monitor
? SAP AG 2001
??Exception messages in APO are generally known as alerts.

??In Demand Planning you can define your own alerts using macros.
??TheAlert Monitor can be accessed from either the DP planning table, or the Supply Chain Cockpit
(SCC).
??Exceptions detected are automatically collected in the alert repository, and evaluated in the Alert
Monitor.
??To display information in the Supply Chain Cockpit (SCC), you must first preselect all the objects
for which you want to receive alerts in the Alert Monitor profile.
??The Alert Monitor profile functions as a filter for viewing specific sets of alerts. You must create a
separate profile for each alert selection. Furthermore, you must enter the name of the Alert
Monitor profile you want to use in the Supply Chain Cockpit user profile.(See APO
documentation: Supply Chain Cockpit). If no Alert Monitor profile name is specified in the SCC
profile and no work area is assigned to the alert selection, no alerts will be displayed in the
monitor.
© SAP AG AP210 1-1 1

APO Integration - Business Warehouse
Demand Planning
Forecast Reporting
Sales history,
Price, Costs, ... Business
APO
Information
Data Mart
Warehouse
Forecast
Demand Planning specific data Central Data Pool

? Forecast & planning scenarios ? Summarized data
? Causal factors ? POS, order, and shipment
data
? Lifecycle patterns
? Syndicated POS data
? Seasonal patterns
? Cost information
? Promotional patterns
? ...
? SAP AG 2001
??SAP'sBusiness Information Warehouse (SAP BW) is contained in the APO scope of supply and is
completely integrated with it.
??Ifyou are going to execute extensive reporting, it is a good idea to set up an independent BW server,
and only transfer the data that is relevant for planning to the APO system.
??As data structures in BW and APO are identical, you can also evaluate APO data with the BW
frontend.
© SAP AG AP210 1-1 2

Evaluations in APO
? Using the BW Business Explorer you can evaluate:

? Order data from the liveCache
? Aggregated data in InfoCubes
Extraction Planning
structure area
RemoteCube
liveCache
Business Explorer DP InfoCube
? SAP AG 2001
??You can also evaluate data from APO using the BW frontend.
??It is not only the aggregated actual datafrom the InfoCubes that are evaluated, but also all of the
order and time series objects from the liveCache.
??The prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO;
an extraction structure for the planning area; an infosource, and an SAP RemoteCube that reflects the
liveCache data.
© SAP AG AP210 1-1 3

Data Structure: InfoCubes
Aug. Sept.
W32 W33 W34 W35 W36 W37 W38 W39 W40 W41
Time series
d
rio
Pe
Regions
Regions
Product
InfoCubes are used to store

actuals from OLTP systems in APO
Product hierarchy
? SAP AG 2001
??An InfoCube consists of a number of relational tables that are arranged according to the star schema:
a large fact table in the center, surrounded by several dimension tables. Dimension tables are
independent of one another. The fact table connects the dimensions with the key figures.
??InfoCubes are used in BW and Demand Planning as central data containers They consist of key
figures, attributes, and time characteristics.
??A key figure is a numerical value that is either a quantity or a monetary amount; for example,
projected sales value in dollars or projected sales quantity in pallets.
??Characteristics are the objects by which you aggregate, disaggregate and evaluate business data.
??Time characteristics define the periods in which you view, plan and store data.
??The multidimensional nature of the InfoCubes allows for powerful data analysis capabilities using
the Demand Planning selection and drill up / drill down functions.
© SAP AG AP210 1-1 4

Defining a Planning Area
Collaboration Interactive Planning
Planning book I Planning book II
Planning Areas
Time series Orders
liveCache
liveCache liveCache
liveCache
Actuals Business Core

Extraction Explorer Interface
? SAP AG 2001
??A planning area is the central data structure of Demand Planning and Supply Network Planning. It
groups together the parameters that define the scope of planning activities. It also determines where
and how the planning results are saved.
??InDemand Planning and Supply Network Planning, data is divided into planning areas, and
subdivided into versions. Consequently, the data that you save in planning version 1, planning area 1
does not overwrite the data in planning version 1, planning area 2.
??The planning area contains characteristics, and key figures for planning, and must be initialized for
every planning version.
projected sales value in dollars or projected sales quan tity in pallets.
??Key figure data can be read from different InfoCubes or time series objects.
??Key figure planning data is stored in time series objects in the liveCache.
© SAP AG AP210 1-1 5

The Planning Table
Selection
APO - Product Total APO - Location Total
ID Object Text Design Graph Capacity Leveling
Object 1 Text 1 Title view W 24 W 25 W 26 W 27 W 28

Object 2 Text 2 Key figure 1
Selection profile Key figure 4
User Key figure 5
Selection ID
Header information
Selected objects
Planning book
Data views Right mouse button:
additional settings
Standard selections
Macros
? SAP AG 2001
??The APO modules Demand Planning and Supply Network Planning have a standard user interface.
It consists of two significant components: the selection range and the work area.
??The selection range (Shuffler) is the window, where you choose the InfoObjects to be planned.
??Inthe Shuffler, you can save commonly used selections, and load existing selections. To open the
Shuffler, choose the symbol selection window.
??The selection profile displays all the selection IDs which have been assigned for the planner. The
planner can access commonly used selections quickly using the selection IDs.
??Inthe data view area, you choose your planning books, and views. You can define a filter for
available planning books and views.
© SAP AG AP210 1-1 6

Planning & Reporting
? Consistent planning (top down,

middle out, Aug. Sept.
W32 W33 W34 W35 W36 W37 W38 W39 W40 W41
time sequence
bottom up)
d
rio
Pe
? Slice & dice 203
Customer
124
? Drill downs & ups Regions

Material
? Multiple demand plans

to be simulated Product Groups
? Standard forecast accuracy

analysis
? SAP AG 2001
??Planning supports online simulation in multiple planning scenarios, consistent planning throughout
your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and
disaggregation, and slice-and-dice techniques.
??Consistent planning means that planning data on all planning levels can be consistently held
(automatic aggregation and disaggregation).
© SAP AG AP210 1-1 7

Statistical Toolbox
? Univariate Forecasting
? Moving average
? Models (constant, seasonal
trend, seasonal)
? Exponential smoothing
? Seasonal linear regression
? Holt-Winters
? Croston's method (for sporadic
demand)
? Causal Analysis
? Multiple linear regression
? Composite forecasting
? Weighted average of multiple
models
? SAP AG 2001
??The product portfolio of a company covers a variety of products in different stages of their lifecycle
and with different demand types.
??APO Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to
choose the best method for a specific demand type.
??Compositeforecasting extends the idea of pick-the-best; with this technique you combine two or
more methods.
??Croston's method allows you to model "lumpy" (sporadic) demand.
??The statistical forecasting toolbox provides all the features you require to efficiently create accurate
forecasts, including everything from data analysis via time series models through multiple linear
regression.
© SAP AG AP210 1-1 8

Lifecycle Management & Like Modeling
Actual data of the old product
Forecasting of the new product

Sales
Like
Lifecycle
Time
? SAP AG 2001
??You use lifecycle planning and "Like" modeling to forecast the launch (phase-in) and
discontinuation (phase-out) of a product.
??A product's lifecycle consists of different phases: launch (phase-in), growth, maturity, and
discontinuation (phase-out). This process models launch, growth and discontinuation phases.
??For all characteristic value combinations, you can use either a "like" profile, a phase-in profile, or a
phase-out profile, or any combination of these.
??Ifthe phase-out profile period is within the history horizon of the master forecast profile, the system
adjusts history input values, displays the adjusted values in the original history and corrected history
key figures, and writes the adjusted values in the corrected history.
??Ifthe phase-in profile period is within the future horizon of the specified master forecast profile, the
system adjusts baseline (original) forecasts, and writes the adjusted values in the corrected forecast
key figure.
© SAP AG AP210 1-1 9

Promotion Planning
Forecast simulation
Sales Total sales:
Profit Total profit:
Promotion 1 Promotion patterns

’95 ’96
-10% ’97 ’98

Price Planner
Planner
Quantity
? SAP AG 2001
??Promotions can have a major impact on consumer behavior.

??In APO Demand Planning, you can plan promotions or other special events independently of the rest
of your forecast.
??Use Promotion Planning to record either one-time events, such as the millennium, or repeated events
such as quarterly advert ising campaigns. Other examples of promotions are trade fairs, coupons,
free-standing inserts, competitors' activities, market intelligence. Examples of events that also have
an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as
hurricanes, and tornadoes.
??Promotional uplifts can be defined in units or percentages by common promotion patterns. The effect
of a promotion pattern that occurred in the past can be automatically detected using sales history or
estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can
therefore be reused if a promotion of the same type is repeated. A copy function in the promotion
catalog also supports "like" modeling of "like products," "like regions", and so on. There are several
techniques available to determine the impact of a historical promotion. One such technique is
multiple linear regression with or without a trend or seasonality.
© SAP AG AP210 1-2 0

Release of Sales Quantities as Planned
Independent Requirements
Demand Planning Production Planning
Planned independent
Key figure: sales quantity requirements
Macros SNP
Alerts PP/DS
Key figure: feasible Production quantities

sales quantity
? SAP AG 2001
??Once the various stakeholders in the forecast have reached a one-number, consensus plan, you
release the demand plan as a planned independent requirement.
??You release the demand plan from Demand Planning (DP) via either the demand planner or the SNP
planner.
??This release causes planned independent requirements to be created in the order liveCache. These
anonymous demands form the basis of SNP, or PP/DS, where BOM explosion, capacity planning,
and sourcing are carried out for the complete supply network.
??After feasibility of the planned sales quantities in SNP or PP/DS has been checked, the results can be
transferred back to Demand Planning. Macros are used to analyze the differences between the
demand plan and feasible quantities and alerts are generated if large differences occur.
© SAP AG AP210 1-2 1

Conclusion
You are now able to:
? Define the basic concepts of Demand Planning

and its integration with other APO components
? Describe the basic architecture of Demand
Planning within APO
? SAP AG 2001
© SAP AG AP210 1-2 2

InfoCubes
Contents:
? Administrator Workbench
? InfoCubes defined
? Creating InfoCubes
? Settings to load data to InfoCubes
? SAP AG 2001
© SAP AG AP210 2-1

Unit Objectives
At the conclusion of this unit, you will be able to:
? Describe the tasks and functions of the

Administrator Workbench
? Describe how InfoCubes, characteristics, and key
figures are set up
? Describe the methods used to populate
InfoCubes with data from R/3, Excel, and BW
? SAP AG 2001
© SAP AG AP210 2-2

11 Course Overview 2
22 InfoCubes
33 Configuration
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 2-3

Business Scenario
? In preparation for the use of demand planning, the

Precision Pump Company will create the data
structures that will store the historical data
? The data structures will then be populated with
actual data
? SAP AG 2001
© SAP AG AP210 2-4

Demand Planning
Location
Aggregated actual data Future demand
Product hierarchy forecast
Sold-to party
Sales organization
Region
? Incoming order
value ? Statistical forecasting
? Quantities ? Collaborative forecasting
Values R/3
? ? Promotions
? POS data Excel
? Nielsen / IRI data Non-SAP system
? SAP AG 2001
??Administrator Workbench is the tool you use to create InfoObjects and InfoCubes, and to load data
from a source system to the InfoCubes. APO Release 3.0 contains the complete Business
Information Warehouse (BW), Release 2.0.
??You use InfoCubes to store actual data and archive old planning data. If you have an external data
warehouse such as the SAP Business Information Warehouse (BW), you transfer data relevant for
planning to the Demand Planning InfoCubes (DP data mart).
??Aggregated actual data can be extracted from the R/3 system in exactly the same way as it can be
imported from BW, Excel, and legacy systems.
??POS (Point of Sales) data is consumer sales data. This can be procured from firms like Nielsen or IRI
(Information Resources Inc.).
© SAP AG AP210 2-5

Extracting Transaction Data
InfoCubes
Update rules
Communication
InfoSource
Communication structure
structure
Transfer rules Transfer rules

Transfer
Transfer structure
structure Transfer
Transfer structure Transfer
Transfer structure
structure
Transfer
Transfer structure
structure
Extraction Extraction
Extraction source
source structure
structure
Extraction source
source structure
structure Extraction
Extraction source
source structure
structure
Transaction data Transaction data
OLTP System 1 OLTP System 2

DataSource
? SAP AG 2001
??A DataSource is an infrastructure which allows information to be transported between OLTP

systems and the APO Data Mart. This infrastructure consists of various DDIC structures, which have
specific transformation rules between one another. DataSources thus regulate the data flow from the
extraction source structure in the source system to the communication structure in the SAP BW,
which then provides the data. DataSources can provide both transaction data (this data is stored in
InfoCubes), and master data (attributes, texts, and hierarchies - this data is stored in separate
transparent tables). DataSources for transaction data and master data have almost an identical
structure.
??DataSources describe how many pieces of information are available concerning a particular business
transaction or transaction type (such as Cost Center Accounting). There are therefore many
DataSources in an operative SAP BW environment that describe the individual activities within the
applications to be analyzed.
??When a DataSource is generated, the transfer structure, and communication structure are generated
in the APO Data Mart system. Transfer structures always exist as a pair in both a source system, and
the associated APO Data Mart system. Data is transported in its original application format from a
source system into an APO Data Mart, via the transfer structure. From there transformation rules are
used to transfer the data to the communication structure of the InfoSource.
The communication structure is independent of the source system and contains all the InfoSource
fields that it represents in the APO Data Mart.
© SAP AG AP210 2-6

? Central tool for maintaining

? Source systems of aggregated order data (R/3, Excel, BW,
non-SAP systems)
? InfoAreas
? InfoObjects (characteristics and key figures)
? InfoSources
? InfoCubes
? Data load scheduling and monitoring
? Used by APO and BW
? SAP AG 2001
??The Administrator Workbench is the central location for maintaining InfoCubes, InfoObjects, and all
system extraction tools for retrieving external data.
??The APO data mart uses the same extraction tools as SAP's BW; so it has the same capability to tie
together R/3 and non-R/3 systems, other data warehouses, and application data files, as well as, use
third party extraction tools.
© SAP AG AP210 2-7

InfoObjects and InfoObject Catalogs
Characteristics ? Specific characteristic types:

? Texts and attributes ? Time characteristics such as "fiscal
? Hierarchies year"
? Navigation attributes ? Unit characteristics such as

"currency" or "local currency"
Key figures: numeric fields in amounts and quantities that are

constantly being updated (such as "turnover", and "sales
quantity")
? Values / quantities
? Currency / units of measure
InfoObject Catalogs
? Organize characteristics and key figures
? SAP AG 2001
??'InfoObject' is the gener icterm for the key figures and characteristics of the APO DataMart. It comes
with both standard BW InfoObjects, and standard APO InfoObjects (starting with '9A'). When you
are creating your own InfoObject, you can decide whether to create an APO InfoObjec t, or a BW
InfoObject. For characteristics it is not important whether you create APO characteristics, or BW
characteristics. For key figures, you should create APO key figures if you will want to fix values or
quantities to this key figure at a later stag e.
??InfoCatalogs can be user-defined. They are used to organize characteristics and key figures.
??Navigation attributes are used for grouping and selecting actual and planning data. Typical
navigation attributes are for example, MRP controller, or customer group who do not represent a
separate planning level but are used for grouping.
© SAP AG AP210 2-8

InfoArea
? InfoAreas are user-defined work areas used to maintain,

monitor, and organize:
? InfoObjects
? InfoCubes
? Update rules
? InfoCube content queries
InfoArea
Key figure
Catalog
Characteristic
Catalog
InfoCubes
InfoObjects
? SAP AG 2001
??Within the Business Information Warehouse, InfoAreas are used to group objects:
??Each InfoCube is assigned to an InfoArea.
??InfoObjects can also be assigned to different InfoAreas via InfoObject catalogs.
© SAP AG AP210 2-9

Data Structure: InfoCubes
Aug. Sept.
W32 W33 W34 W35 W36 W37 W38 W39 W40 W41
time series
d
rio
Pe
Regions
Regions
Product
Product hierarchy
? SAP AG 2001
??InfoCubes are the data repository for Demand Planning.
??The architecture of an InfoCube is based on what's known as a "star schema" which consists of fact
tables and dimension tables.
??The multidimensional nature of an InfoCube allows the user to slice and dice the data in many
different ways.
© SAP AG AP210 2-1 0

InfoCube
? Central data store for reports, evaluations and data used in

forecasting
? Contains two types of InfoObjects
? Key figures
? Characteristics (grouped in dimensions)
? 1 fact table with multiple dimension tables
? 3 dimensions are predefined by SAP
?Time
?Unit
?Data packet
? SAP AG 2001
??Key figures are currency, quantity or number fields such as sales revenue or sales quantity.
??A characteristic is an object on which you aggregate and report data. Examples of characteristics are
region, product, customer (unit characteristics) and month, week, day (time characteristics).
??When deciding which characteristics to include in your InfoCube for Demand Planning, consider
that:
??Characteristics define the levels to which you can aggregate data
??Characteristics define the levels at which you can maintain data
??In addition to the three dimensions that are generated automatically (time, unit, Info Package), your
InfoCube contains user-defined dimensions. In Demand Planning, one of these user-defined
dimensions is "version".
??Create BW InfoCubes only, as APO InfoCubes are only used internally.
© SAP AG AP210 2-1 1

Fact Table
? A fact is a figured quantity such as quantity, revenue,

discount, sales overhead. It is a key figure used in
evaluations generated by the Data Warehouse.
? The fact table below shows the table design used in the
data mart. Fact tables usually contain numeric data.
P C T Order qnt. Turnover Forecasts Promotions

250 $ 500.000 500 20
50 $ 100.000 100 5
… … … ...
Fact Table
? SAP AG 2001
??The fact table contains the key figure data for each unique combination of characteristic values. The
referencing of the fact table takes place using the artificially entered dimension key (DIM-ID). As
artificial keys are formed for the connection between the dimension and fact table, changes to the
master data table can take place relatively problem-free, without having to rebuild the (natural) key
every time. In the evaluation, a resulting quantity is first formed by the selections in the dimension
tables. This quantity is then selected directly by the artificial key from the fact table.
© SAP AG AP210 2-1 2

Dimensions
? Dimensions are used to group characteristics logically

? A dimension table contains a primary key, a dimension
number, and characteristics
Customer dimension
C Customer # Region …
13970522 West ...
Product Service Line dimension Time dimension
P Product # Product group … T Time Fiscal year …

2101004 Display ... 10 1998 ...
? SAP AG 2001
??Dimensions are a way to organize the characteristics of an InfoCube.

??From a technical point of view, the characteristics of the dimension table form the "edges" of the
data cube that is stored as the InfoCube in the data mart. The dimensions are connected with the fact
table using the DIMs. The data in the fact table is accessed by selecting characteristics and their
characteristic values from the dimension tables and by generating a corresponding SQL statement
that is used to access the fact table.
© SAP AG AP210 2-1 3

Star Schema
? Combinations of Fact and Dimension Tables
Customer dimension
C Customer # Region …
13970522 West ...
P C T Order qnt. Turnover Forecasts Promotions

250 $ 500.000 500 20
50 $ 100.000 100 5
… … … ...
Fact table
P Product # Product group … T Time Fiscal year …

2101004 Display ... 10 1998 ...
Product Service Line dimension Time dimension
? SAP AG 2001
??InfoCubes produce a multi-dimensional data model on the database server of the APO data mart. In
this way, the facts are collected in separate fact tables and the dimensions grouped into separate
dimension tables. Both table types are connected with one another in a relational way. Individual
dimension characteristic values can in turn be subdivided by master data tables. In this way, master
data, classification and hierarchy data tables as well as dimension tables are finally grouped in a star -
like formation around one central fact table. During the analysis, first the data from the surrounding
smaller tables is collected together in order to reduce the reading time in the large fact table.
??This database schema "Star Schema" guarantees high reporting efficiency and provides a flexible
solution that can be easily adjusted to changing business requirements.
??When creating an InfoCube you concentrate on the key figures and characteristics that you require in
planning. You must then group together your characteristics in dimensions, including a time
dimension, and a quantity dimension. Using your entries the system automatically generates a Star
Schema in the database.
© SAP AG AP210 2-1 4

Source System
? All systems which provide data for extraction into the data
mart
? Types of source system
? SAP R/2 Systems
? SAP R/3 Systems (From Release 3.0D)
? External systems (third party tools or files)
? Data is extracted and transformed using the InfoSource for
the source system
? SAP AG 2001
??Each source system represents a logical system.

??In a test system, you can use the same source system several times to upload data; you don't need to
create a source system every time you upload data.
??Each source system represents one physical source of data.
© SAP AG AP210 2-1 5

Data Extractors: LIS Example
Types of extractor
Application-specific Application non-specific
BW Content Generic Generic

extractors extractors extractors
extractors
FI LIS Database
CO table/view
HR
... FI SL
SAP Query
LO Cockpit CO PA
Transparent Transparent Data source

Table Table
Enhancements
Enhancements
? SAP AG 2001
??Transaction
data that is transferred to InfoCubes via extractors can come from a number of different
modules. Multiple extraction mechanisms are necessary for this purpose, and for historical
development reasons. The next few slides will provide an example of transaction data extraction
from LIS.
© SAP AG AP210 2-1 6

Updating Information Structures
APO System
InfoCubes
Update rules
Communication
Transfer rules
Transfer structure Transfer structure
R/3 OLTP Transfer

Transfer structure
structure Transfer
Transfer structure
Extraction
Extraction source
source structure Extraction
Extraction source
source structure
S5nn S5nnBIW1 S5nnBIW2 S5nn S5nnBIW1 S5nnBIW2
OLTP
OLTP 1:
1: LIS
LIS info
info structure
structure OLTP
OLTP 2:
2: LIS
LIS info structure
? SAP AG 2001
??Above you see the flow of data from the source system into the Demand Planning data mart. You
carry out this transfer using tools in the Admin Workbench.
© SAP AG AP210 2-1 7

LIS Extraction
8. Load transaction data into the InfoCube
7. Define loading process
6. Maintain InfoCube and update rules
5. Maintain transfer rules
4. Maintain communication structure
3. Replicate/assign DataSource
2. Generate DataSource in the OLTP
1. Set up LIS environment
? SAP AG 2001
??The following scenario provides an example of how actuals are loaded onto the APO system from an
R/3 information structure. This is simply one of the ways the data mart can be configur ed for
Demand Planning. You can find details on the APO Administrator Workbench in the SAP Business
Information Warehouse documentation under Administrator Workbench.
??This procedure is valid from R/3 release 3.1H.
© SAP AG AP210 2-1 8

Setting up the LIS Environment
BW integration for LIS info structures
Information structure S5nn

Display settings
Set up LIS environment

Generate DataSource
Delete environment/DataSource
Delta update in LIS

Activate/deactivate
Generate update
? SAP AG 2001
??You must first define several settings so that LIS info-structures can be used as source tables.
??You first have to configure the LIS environment for the associated info structures.
??To do this, choose 'Administrator Workbench' => 'Source Systems' => (choose appropriate source
system and click the right mouse button) 'Customizing for extraction...' => 'Generated DataSources'
=> 'Logistics' => 'Logistics Information System' => 'Connect information structures'.
??Alternatively, you can call up transaction 'SBIW' in the R/3 system, or start report 'RMCSBIWC' in
the menu.
© SAP AG AP210 2-1 9

Process: First Delta Update
R/3 OLTP system APO
S5nn
InfoSource
2LIS_01_S5nn
pdate
u
lta
LIS Update De
Process 1.
S5nnBIW1
TMCBIW
Control table S5nnBIW2
BIW Status '2' R
? SAP AG 2001
??If you start the delta update from OLTP into APO, tables S5nnnBIW1 and S5nnBIW2 are used.
??The info structure is active in OLTP. Data from S5nnBIW1 is loaded into the BW for the first delta
update.
??During the first delta update in APO, the LIS update process in the OLTP system updates both the
LIS info structure itself, and the table S5nnBIW2 that is then used for the second delta update
request in the BW.
??At the start of every delta update request, table S5nnBIW1 is automatically exchanged with table
S5nnBIW2 to avoid data inconsistencies during upload. During a delta update in the BW, the
indicator "BIW status" in table "TMCBIW" is automatically switched from 1 (for table S5nnBIW1)
to 2 (for table S5nnBIW2).
??The data from a delta table remains in the table until the next delta upload, so that a reload is possible
up to that point.
© SAP AG AP210 2-2 0

Summary of Source System and InfoCubes
InfoArea 1 InfoArea 2
InfoCube InfoCube
Update rules
Communication structure InfoSource
Transfer structure
Source System
R/3 Excel
Legacy BW
? SAP AG 2001
??Above you see the flow of data from the source system into the Demand Planning data mart. You
carry out this transfer using tools in the Admin Workb ench.
??The data is passed from the source system to the InfoSource in the DP data mart via an extract
structure. In the extract structure, data from an R/3 application, for example, is prepared for the
InfoSource.
??An InfoSource is a provider structure in the Admin Workbench. It contains data that from a business
point of view logically belongs together. The InfoSource metadata defines which InfoObjects are
contained in the InfoSource, as well as the descriptions and technical information of the InfoObjects.
In the Admin Workbench you assign the InfoSource to an application component.
??The system generates the transfer structure and the communication structure from the InfoSource
metadata. The data is passed through these two structures into the InfoCube from the InfoArea.
© SAP AG AP210 2-2 1

InfoSource
? Supplies the data mart with data from a source system that
belongs logically together from a business point of view
? Types of InfoSources:
? Transaction data
? Master Data, texts, hierarchies
? Transfer structures and communication structures are
generated from the InfoSource
? SAP AG 2001
??The InfoSource allows the APO system to:

??transfer the extracted data from the extraction structure into the SAP R/3 OLTP
??transfer the data to the APO transfer structure using the OLTP transfer structure
??convert the data using the APO transfer rules, and
??transfer the data to the APO communication structure.
??The InfoSource prepares the data to be stored permanently in the InfoCube.
??For the delta upload, in addition to the LIS info structure, two more tables are needed as extractors in
the OLTP system.
© SAP AG AP210 2-2 2

Update Rules
? Link InfoSource to the InfoCube

? Map the characteristics and key figures
between the InfoSource and the InfoCube
? Two methods: InfoArea 1
? Based on key figures from the
communication structure (standard) InfoCube
? Using a routine
Communication
? SAP AG 2001
??A number of operations can be performed within the update rules.

??InfoObjects can be transferred from the communication structure into an InfoCube.
??Constants can be used for InfoSource actuals.
??More complex calculations can be made using ABAP/4 routines. The ABAP editor is directly
embedded in the update rule maintenance - a User Exit does not need to be defined.
??Routines can be used to access customer -specific tables and APO-generated tables (master data
tables, hierarchy tables...). Because of this, update rules do not need to be used for fast information
changes; all that requires maintaining are the table contents.
??Currency conversion for key figures.
© SAP AG AP210 2-2 3

Info Package
InfoSource
? Info Package
? Control parameters for loading data
? Control of data target
? Controlling the InfoCubes to be updated
? Update parameters
? Scheduling & monitoring of jobs
? SAP AG 2001
??An Info Package is created for each InfoSource.

??The Info Package contains all of the upload process control parameters as well as appropriate
scheduling and monitoring functions.
??From the Info Package you can control which InfoCubes are populated in each load.
© SAP AG AP210 2-2 4

Data Mart: Unit Summary

? Describe the tasks and functions of the
? Describe how InfoCubes, characteristics, and key
figures are set up
? Describe the methods used to populate InfoCubes
with data from R/3, Excel, and BW
? SAP AG 2001
© SAP AG AP210 2-2 5

© SAP AG AP210 2-2 6
Exercises
Unit: InfoCubes
Topic: Administrator Workbench
At the conclusion of this exercise, you will be able to:

?? Identify the dimensions that are defined for an InfoCube
?? Identify the characteristics that are defined for an InfoCube
?? Identify the key figures and data types that are defined for an InfoCube
The course scenario is as follows:

Sales data from customer orders and invoices has been updated in the
R/3 information structure S628. These data records have been
transferred to the APO SALES InfoCube and are to be used as the actual
data for demand planning.
You will be allocated a group number ## for all exercises in this course. Ask your
instructor.
1-1 Explore the structure of the SALES InfoCube in the Administrator Workbench .
1-2 What dimensions have been defined in the SALES InfoCube and which
characteristics are assigned to each individual dimension?
In the following table, note down the dimensions and characteristics from the SALES
InfoCube:
Dimension Characteristics
© SAP AG AP210 2-2 7

1-3 What key figures are defined for the SALES InfoCube? What data type do they have?
Key figure Long description Key figure type Data type
1-4 Display the contents of the SALES InfoCube and analyze the characteristic
combinations and entries for the key figures.
1-5 Call up the BW Business Explorer Analyzer, to evaluate the data that is saved in the
SALES InfoCube. Log on to the APO system and open the query SALES DATA for
the SALES InfoCube.
Exit the query and Business Explorer Analyzer without saving.
© SAP AG AP210 2-2 8

Solutions
Unit: InfoCubes
Topic: Administrator Workbench
You will be allocated a group number ## for all exercises in this course. Ask your
instructor.
1-1 Explore the structure of the SALES InfoCube in the Administrator Workbench .
Demand Planning ? Environment ? Current Settings ? Administrator

Workbench
You are now in the Modeling screen for Data Targets
Expand the SALES InfoArea by pressing the “+” in front of the InfoArea
Right click on the SALES InfoCube: Display data model
Stay in the Administrator Workbench for steps 1-2 to 1-4.
1-2 What dimensions have been defined in the SALES InfoCube and which
characteristics are assigned to each individual dimension?
Dimensions are represented by the three triangle icon.
When you expand a dimension, you see the characteristics assigned to it
In the following table, note down the dimensions and characteristics from the SALES
InfoCube:
Dimension Characteristics
Planning version APO Planning version
Sales Sales organization, division, sold-to party
Product Product hierarchy, APO product, APO location
Time Calendar year/month
Data packet Change run ID, record type, request ID
Unit Unit of measure, currency key
© SAP AG AP210 2-2 9

1-3 What key figures are defined for the SALES InfoCube? What data type do they have?
Right click on the SALES InfoCube: Change

Choose the <Key figures> tab.
Choose <Detail view>.
Key figure Long description Key figure Data type

type
INORDQTY Incoming order qty Quantity QUAN
INORDVAL Incoming order value Amount CURR
INVQTY Invoiced sales qty Quantity QUAN
INVVAL Invoiced sales value Amount CURR
1-4 Display the contents of the SALES InfoCube and analyze the characteristic
combinations and entries for the key figures
Right click on the SALES InfoCube: Manage

Select the <SALES> InfoCube at the top of the screen
Choose <Display Contents> or F6
Choose <Field selct. for output>
Select the characteristics that you want to analyze
Do not select SID characteristics that contain the dimension table internal key
Choose <Execute>
Choose <Execute>
Review the data in your InfoCube.
Exit the Administrator Workbench
© SAP AG AP210 2-3 0

1-5 Call up the BW Business Explorer Analyzer, to evaluate the data that is saved in the
SALES InfoCube. Log on to the APO system and open the query SALES DATA for
the SALES InfoCube.
To call up the BW Business Explorer Analyzer: Start? Programs ? BW ? SAP
Business Explorer Analyzer
Activate the macros and press the “open” icon in the blue Business Explorer tasks
bar.
Log on to your APO system.
Select the “Queries” pushbutton.
Expand the SALES InfoArea, and select the query SALES DATA for the SALES
InfoCube. Press OK.
You are given an aggregated view of the invoiced sales quantity and invoiced sales
value of the three sales organizations. By clicking the right mouse button over key
figures or characteristics you can display data in terms of products, sold -to parties,
or months.
Exit the query without saving, and log out of the SAP Business Explorer Analyzer.
© SAP AG AP210 2-3 1

Demand Planning Configuration
Contents:
? Planning object structures
? Characteristic Value Combinations
? Planning Areas
? Proportional Factors
? Releasing the Demand Plan
? SAP AG 2001
© SAP AG AP210 3-1

Unit Objectives
? Configure planning area settings

? Create planning networks
? Provide an explanation of consistent planning
? Describe alternative disaggregation methods
? Maintain proportional factors
? Release sales data
? SAP AG 2001
© SAP AG AP210 3-2

11 Course Overview
22 InfoCubes
3
33 Configuration
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 3-3

Business Scenario
? After the Precision Pump Company has created its

InfoCubes for saving actual data, they now have to
define the planning areas, and make the
characteristics, and key figures available for
planning.
? SAP AG 2001
© SAP AG AP210 3-4

Demand Planning Configuration
Planning table
Planning book
Characteristics Key figures
Planning area
Characteristics: Key figures: Version:

• Region • Demand Plan • 000 Active version
• Sales area • Actual sales • Sim1 Simulation 1
• Product hierarchy • Overrides • Sim2 Simulation 2
• Sold-to party • Promotions
• Location • Production quantity
? SAP AG 2001
??To save planning data in an InfoCube, create an extraction structure for the planning area, and
connect it to the InfoCube.
© SAP AG AP210 3-5

Assigning Characteristics to a Planning Area
Planning table
Planning book
Planning area
Characteristics Key figures Version
? SAP AG 2001
??Demand Planning characteristics define the levels on which the demand plans are created, changed,
aggregated, and disaggregated. For example, your Master Data could include all the products,
product families, regions, and customers that your company is going to plan with APO Demand
Planning, plus all the appropriate combinations of these (for example, which customers buy which
products, in which regions). You map these levels in a non-hierarchical selection tree. From a
technical point of view, specify which characteristic values can be planned for the characteristics in
your planning area. Demand Planning or Supply Network Planning master data includes all the
allowed values of a characteristic. These are called the characteristic values. Characteristic values are
specific names. Thus the characteristic " Location", for example, can have the values London, Delhi,
or New York.
??You can only use a planning area that is shared by both Demand Planning, and Supply Network
Planning, if Demand Planning in your company is done on a "product" level or "product plus
location" level. If Demand Planning is done on other levels, such as on a brand or regional level,
separate planning areas are required. A planning area used for Supply Network Planning can only
contain Standard SNP characteristics.
??Characteristicsthat are used both in Demand Planning, and Supply Network Planning can be used in
one planning area.
© SAP AG AP210 3-6

Master Planning Object Structure
Planning area
Characteristics
Aggregates
Master planning
object structure
tes
on attribu
ati
SNP characteristics Navig
DP characteristics Characteristic value combinations
? SAP AG 2001
??A master planning object structure contains characteristics that can be planned for one or more
planning areas. In Demand Planning characteristics can be either standard characteristics and/or
characteristics that you created in the Administrator Workbench. Characteristics define the levels to
which you can plan and save data. Particular characteristics are required for Supply Network
Planning, characteristics-based planning, and als o dependent demand forecasting. These
characteristics can be included in the master planning object structure.
??For demand planning, the InfoCube must be used to generate characteristic combinations for the
planning area.
??The aggregates in APO are not identical to those in the Business Information Warehouse (BW), but
they do have the same purpose: they access data quickly and thus improve performance. SAP
recommends the use of aggregates within Demand Planning.
??An APO aggregate consists of a subset of the characteristics contained within the master planning
object structure. Creating and working with aggregates is optional. Data is always saved at the lowest
detailed level. If aggregates do exist, the system saves the planning data both at the defined
aggregate level and at the lowest detailed level. Data is saved consistently in duplicate. This means
that the total of details is the same as the aggregate value.
??In the APO Administrator Workbench you create characteristics as navigation attributes. These
should be used for selecting and navigation but not as planning levels. You then assign these
attributes to the characteristics they belong to. This is how you can assign the attributes "sales
employee", and "priority", for example, to the characteristic "customer" during definition of the
InfoObject "Customer".
© SAP AG AP210 3-7

Characteristic Value Combinations
Customer dimension
C Customer Region
Baker West
Which customer and
product combinations
Product dimension
should be planned?
P Product Product group
P-102 Pumps
? SAP AG 2001
??Each characteristic value combination represents a planning object in Demand Planning.

??From a technical point of view, each unique combination of characteristic values in each dimension
is represented by a key.
© SAP AG AP210 3-8

Create Characteristic Value Combinations
? Create single characteristic Customer dimension

value combinations
? Delete single characteristic
value combinations
? Generate characteristic value
combinations
Fact
? Analyze characteristic value table:
combinations
Product dimension
? SAP AG 2001
??Characteristic value combinations define the valid relationships between characteristic values and
form the basis for aggregation/disaggregation of key figure values. There are two ways of creating
characteristic value combinations:
??Automatically, by generating characteristic value combinations based on existing data from an
InfoCube. With this option, the system generates all the new combinations that it finds in the
horizon specified. You can plan automatic generation periodically so that new characteristic value
combinations are added each time but old ones are never deleted.
??Individually, by completely defining characteristic values (this creates one data record)
??If you want to create multiple characteristic value combinations (for new products, for example), it
is often a good idea to maintain the characteristic value combinations in Excel, then load them into
an InfoCube, and start to generate the characteristic value combinations for this InfoCube.
??Realignment also provides possibilities for reorganizing actual data and characteristic value
combinations. For more information, read SAPnet R/3 frontend note 360935, and access report
/SAPAPO/TS_REALIGNMENT via transaction SE38.
??The result of the creation process is a network of planning objects.
© SAP AG AP210 3-9

Basic Parameters for Planning Area
Planning area
General parameters Storage buckets profile
• Base unit of measure • Day

• Base currency • Week
• Exchange rate type • Calendar year/month
• Quarter
• Year
• Posting period
? SAP AG 2001
??Planning data is stored in the base unit of measure and the base currency.
??Allthe products you want to plan in a planning area need to be converted into the base unit of
measure at least once.
??A storage buckets profile defines the periods over which data (based on a given planning area) in
Demand Planning, and Supply Network Planning will be saved. You need to have a storage buckets
profile before you can create a planning area.
??To create a storage buckets profile, choose Periodicities for Planning Area from the Current Settings
in Demand Planning or Supply Network Planning. Make the following specifications in a storage
buckets profile:
??one or more periodicities where you would like to save data
??a typical valid time period Horizon (you set the actual horizon when creating the time series for
the planning version)
??Ifdata is saved with a special time stream (such as factory calendars), enter a time stream ID (entry
optional). The time stream must be as long as or longer than the horizon. It may not be shorter.
??If at the start of a planning horizon data is to be saved in a fixed number of rolling days, then in a
larger time bucket, specify the number of days (specification optional).
??You can for example store your actual data in the InfoCube on a monthly time basis and enter the
planning data in the planning area within a more detailed time buckets profile, such as weekly.
© SAP AG AP210 3-1 0

Assigning Key Figures to a Planning Area
Planning table
Planning book
Planning area
Master planning
Time series
object structure objects
SNP characteristics liveCache
liveCache
DP characteristics
Aggregates
? SAP AG 2001
??Key figures are only stored in time series objects in the liveCache.
© SAP AG AP210 3-1 1

Actual and Planning Data
Planning area
Actual key figures Forecast Planning key figures
Time series
Forecasts
objects
objects
to SNP
liveCache
Planned independent
? Incoming order value requirements for
R/3 ? Quantities SNP and PP/DS
? Values Order
Excel
objects
liveCache
liveCache
? SAP AG 2001
??To store planning data in the database (in an InfoCube), create an extraction structure for the
planning area. This extraction structure appears as a DataSource for the APO source system in the
Administrator Workbench. You link this DataSource with the InfoCube via an InfoSource. For more
information read notes 373756, and 374534.
© SAP AG AP210 3-1 2

Create Proportional Factors
? Version dependent
? Period specific (optional)
Product family
? Storage in key figure APODPDANT
70 % 30 %
? Maintenance in planning table
Product A Product B
50 % 50 %
?
?
Plant A Plant B
? SAP AG 2001
??Constant proportional factors are one way of executing disaggregation. Constant proportional factors
are derived from historical data or occasionally past planning data. Disaggregation can be executed
in different ways for different key figures.
??Theproportional factors define the percentage rates at which aggregated data is disaggregated to the
members.
??Enter the version, key figure and horizon to perform an automatic calculation of proportional factors.
The system first calculates the entire quant ity (value) for the key figure in the specified horizon. The
quantities (values) of the individual members are then defined and the percentage calculated.
??You must then specify for which version, and which horizon the proportional factors are to be saved.
??Ifyou select "detailed proportions", you can choose for example which historical periods should be
saved for which future periods, for example, the proportions of June 99 based on the proportions of
June 98 etc.
??You can also maintain the proportional factors interactively via the planning table.
© SAP AG AP210 3-1 3

Disaggregation Methods
The aggregated data is distributed to the members per

period according to the following criteria:
Pro rata
S
According to member data, with no equal member data
Based on a different key figure

P The disaggregation proportions are predefined via another key figure
(for example, the APODPDANT key figure)
Pro rata / in case blank after another key figure

I
According to member data with no member data according
to another key figure
? SAP AG 2001
??Data is disaggregated using the procedure detailed above

??Generate constant proportional factors when you want to disaggregate the planning data in the
following ways.
??Always based on the constant proportional factors
??Based on constant proportional factors, if there is no existing planning data
© SAP AG AP210 3-1 4

Pro Rata Disaggregation
Total
Region Customer Sales Sales
Europe 350 700
Disaggregation
Aggregation
Details
USA Customer1 100 100
Europe Customer1 150 300
USA Customer2 50 50
Europe Customer2 200 400
? SAP AG 2001
??The above slide illustrates how disaggregation is performed if you set key figure Sales to calculation
type Pro rata.
??The data is disaggregated according to the distribution ratio that the system derives dynamically
from the existing planned data. The proportional factors are not used with this disaggregation type.
??In this example, the data is distributed to customer 1 and customer 2 in region Europe based on the
ratio 3:4 (150:200).
© SAP AG AP210 3-1 5

Disaggregation: APODPDANT Key Figure
Total
Region Customer Sales New sales Prop. factor
Europe 350 700 0.5
Aggregation Disaggregation
Details
USA Customer1 100 100 0.25
Europe Customer1 150 350 0.25
USA Customer2 50 50 0.25
Europe Customer2 200 350 0.25
? SAP AG 2001
??The above slide illustrates how disaggregation is performed if you set key figure Sales to calculation
type P with key figure APODPDANT.
??The data is disaggregated according to the proportional factors. In this example, customer 1 and
customer 2 in region Europe have the same proportional factors (0.25), so the data is distributed
equally between them.
??The proportional factors are percentage-based and held in the key figure APODPDANT. You can
make the system calculate proportions for the key figure APODPDANT based on Actual_data.
© SAP AG AP210 3-1 6

Defining a Planning Area: Version
Planning table
Planning book
Planning area
Characteristics Key figures Planning version
? SAP AG 2001
??Inorder to be able to save data for a planning area version, time series must be created for that
version. The system creates time series in the liveCache for each characteristic value combination,
and each key figure.
??If you have to re-initialize
a planning area after actualizing your master data or extending the
planning horizon, you must not delete the old time series objects before creating new objects. The
system can see where new characteristic value combinations already exist, and only creates time
series objects for the new master data time series objects.
© SAP AG AP210 3-1 7

Initializing Version Planning Area
APO Master data (model independent)
Active1model
Model
Transportation Simulation
PPM Products lanes model
Locations
Active Version 000 Planning Version 1 Planning Version n

version dependent master version dependent master version dependent master
and transaction data and transaction data and transaction data
...
Planning area
? SAP AG 2001
??You initialize the planning area by right clicking on the planning area, and choosing Create time
series objects.
??Enter the planning version plus the start and end date. You can re-initialize the planning area in
rolling periods. This deletes "obsolete" periods, and adds new periods for the future.
??If you have to re-initializea planning area after actualizing your master data or extending the
planning horizon, you do not have to delete the old time series objects before creating new objects.
The system is able to recognize where new characteristic value combinations already exist, and only
creates time series objects for the new master data time series objects.
??You delete time series objects, for example, if you are working with five versions, but only want to
keep two of them.
© SAP AG AP210 3-1 8

Version Management
? Copy versions
? Delete versions
Planning area 1 Planning area 2
Characteristic
allocation
Version 1 Version 2
Key figures
allocation
? SAP AG 2001
??Each planning version (or DP version) is a separate set of data. You can display only one version at a
time in interactive planning. Different versions of the plan can be saved for archiving or comparison
purposes.
??You can also copy demand planning versions using Version Management. A version number must
first be created. After the version number is created, you can copy the data using the copy function.
??Boththe version data and the version number are deleted when you delete using Version
Management.
??Demand planning versions are 10 characters long and are alphanumeric.
??Different version management tools are provided for the versions you use in SNP and PP/DS.
© SAP AG AP210 3-1 9

Releasing the Demand Plan
Time series Order

objects objects
liveCache liveCache
Key figure Category (FA)
? Creating planned independent requirements with a time

buckets profile
? Workdays are taken from the location shipping calendar
? Location split
? Product split
? Daily buckets profile when DP storage buckets profile does
not contain any days
? SAP AG 2001
??Ifthe forecast is completed in demand planning, release the forecasted amount to the liveCache as a
planned independent requirement.
??To do this follow the path Demand Planning->Environment->Release to SNP
??The "add data" flag means that the released amounts will be added to planned individual
requirements that may already exist. It is a good idea to use this setting if you want to release from
multiple planning areas.
??Ifthe "location" characteristic is contained in the DP planning area, the sales quantities are
disaggregated to the locations automatically. If you have maintained the distribution of products to
various locations in the location split table, the system will use the corresponding factors.
??You can, for instance, control distribution of a product group to members via product split. Product
split is used when you want to remove characteristic 9AMATNR using extended characteristic
selection.
??Ifthe storage buckets profile from the DP planning area does not contain days, you can still split the
sales quantities over days using the daily buckets profile. How this split is made depends on the
settings in the SNP requirements profile in SNP 2 product master view.
© SAP AG AP210 3-2 0

Location Split
In contrast to location level

disaggregation in the planning
?
?Product
Product demand
demand
area, a percentage split can be
defined in location splits.
40 % 40 % 20 %
Define either generic or specific

quotas for each product.
DC 1 DC 2 DC 3
? SAP AG 2001
disaggregated to the locations automatically. When you release it, you specify your product and
location characteristics (such as 9AMATNR and 9ALOCNO), and the system releases the exact
location product quantities planned.
??If you are using location split, you are not permitted to enter the location characteristic name, as
allocation will be made according to that in the location split table.
??Product split will always be checked.
© SAP AG AP210 3-2 1

InfoCubes & Demand Planning: Unit Summary

? Configure planning area settings
? Create planning networks
? Explain consistent planning
? Describe alternative methods of disaggregation
? Maintain proportional factors
? Release sales data
? SAP AG 2001
© SAP AG AP210 3-2 2

Exercises
Unit: Configuration
Topic: Creating a planning object structure

?? Create a planning object structure
?? Generate characteristic value combinations
?? Create and initialize a planning area
?? Calculate proportional factors
The course scenario is as follows:

The actual data is transferred to the APO SALES InfoCube. Each group
now creates its own planning object structure and planning area to
generate planning data based on shared actual data from the InfoCube.
1-1 Create a planning object structure called POS##. This planning object structure should
contain the following characteristics:
9ALOCNO APO - Location

9AMATNR APO - Product
CUST Sold-to party
DIVISION Division
PRODH Product hierarchy
SALESORG Sales organization
Activate your planning object structure.

A dialog box appears: A master plng object structure already exists for this character.
comb Do you want to create an identical master planning object structure? ? Yes
© SAP AG AP210 3-2 3

© SAP AG AP210 3-2 4
Unit: Configuration
Topic: Characteristic Value Combinations
2-1 Generate characteristic value combinations for your planning object structure POS##.
Use historical data from the SALES InfoCube, version 000 from the previous year.
You must not select Create time series objects. If planning areas already
existed for your planning object structure, the system would create time
series for these planning areas and new characteristic combinations.
2-2 Check the characteristic value combinations that have been generated.
© SAP AG AP210 3-2 5

© SAP AG AP210 3-2 6
Unit: Configuration
Topic: Create planning area
3-1 Create a planning area called PLAN## for your planning object structure POS##.
Store the following parameters:
Storage buckets profile PUMP

Statistics curr. EUR
Exchange rate type M
Unit of measure PC
This planning area should contain the following key figures:
9APROM1 Promotion 1
CORR Correction
CORRFOR Corrected forecast
CORRHIST Corrected history
FINFOR Final forecast
FORECAST Forecast
INVQTY Invoiced sales qty
Make sure that invoice quantity is read from the SALES InfoCube.
When setting the forecast, correction, and corrected forecast key figures, make sure
that the proportional factor from key figure APODPDANT is taken into consideration
for disaggregating blank columns.
Data from an InfoCube in a planning area is generally read-only. Writing

data in the InfoCube is not usually possible. Time series can be read and
written. If you want to save planning data in an InfoCube, you must
create an extraction structure for the planning area, and update the data in
the InfoCube using the Administrator Workbench.
3-2 Create time series for your planning area (PLAN##), for version 000, for 24 months in
the past, and 12 months in the future.
© SAP AG AP210 3-2 7

© SAP AG AP210 3-2 8
Unit: Configuration
Topic: Calculating Proportional Factors
4-1 Generate proportional factors for your planning area PLAN## based on the SALES
InfoCube. Calculate fixed proportional factors for plng version 000, and the next 6
months.
Base the calculation on the mean proportional factor in key figure Invoiced sales
quantity from version 000 for the past 6 months.
The proportional factor calculation results can be displayed and changed interactively
in the planning table. This function is discussed in more detail in the Interactive
Planning unit.
For the proportion calculation in this example, the system sums the
invoiced sale amount data of the past 6 months. The system then
calculates the mean proportional factor of each characteristic value
combination in this horizon, and saves it in the APODPDANT key
figure.
© SAP AG AP210 3-2 9

© SAP AG AP210 3-3 0
Solutions
Unit: Configuration
Topic: Creating a planning object structure
1-1 Create a planning object structure called POS##. This planning object structure should
contain the following characteristics:
9ALOCNO APO - Location

9AMATNR APO - Product
CUST Sold-to party
DIVISION Division
PRODH Product hierarchy
SALESORG Sales organization
Demand Planning ? Environment ? Current Settings ? Administration of

Demand Planning and Supply Network Planning
Press the “planning area” button, and select planning object structures.
Right click on the Plng object structures folder icon: Create master plng object
struct.
Enter the name POS## and choose Enter.
For text, enter “Group ## planning object structure”, and select the above
characteristics from the right hand column, and choose “Add char.”.
Select the “Activate” symbol, and activate your planning object structure.
A dialog box appears: A master plng object structure already exists for this
character. comb Do you want to create an identical master planning object
structure? ? Yes
Return to Administration of Demand Planning and Supply Network Planning
© SAP AG AP210 3-3 1

© SAP AG AP210 3-3 2
Unit: Configuration
Topic: Characteristic Value Combinations
2-1 Generate characteristic value combinations for your planning object structure POS##.
Use historical data from the SALES InfoCube, from version 000 of last year.
In Administration of Demand Planning and Supply Network Planning, right click

on your planning object structure POS##: Maintain char. combinations
Choose <Generate characteristic combination...>

For the InfoCube enter “SALES” and version number 000.
As your “Start date”, enter a year ago from today.
Give today’s date as your “End date”.
Choose <Execute>.
Return to the <Maintain Characteristic Values Relevant to Planning> screen
You must not select Create time series objects. If planning areas already
existed for your planning object structure, the system would create time
series for these planning areas and new characteristic c ombinations.
2-2 Check the characteristic value combinations that have been generated.
Display characteristics combinations.
Return to S&DP Administration
© SAP AG AP210 3-3 3

© SAP AG AP210 3-3 4
Unit: Configuration
Topic: Create planning area
3-1 Create a planning area called PLAN## for your planning object structure POS##.
Store the following parameters:
Storage buckets profile PUMP

Statistics curr. EUR
Exchange rate type M
Unit of measure PC
This planning area should contain the following key figures:
9APROM1 Promotion 1
CORR Correction
CORRFOR Corrected forecast
CORRHIST Corrected history
FINFOR Final forecast
FORECAST Forecast
INVQTY Invoiced sales qty
Make sure that invoice quantity is read from the SALES InfoCube.
When setting the forecast, correction, and corrected forecast key figures, make sure
that the proportional factor from key figure APODPDANT is taken into consideration
for disaggregating blank columns.
Data from an InfoCube in a planning area is generally read-only. Writing

data in the InfoCube is not usually possible. Time series can be read and
written. If you want to save planning data in InfoCubes, you must create
an extraction structure for the planning area, and update the data in the
InfoCube using the Administrator Workbench.
© SAP AG AP210 3-3 5

In Administration of Demand Planning and Supply Network Planning, press the
“Planning object structures” button, and select planning area
Right click on the planning area folder icon: Create planning area.
Enter the name PLAN##, your planning object structure POS## and the above
parameters. Press OK enter.
Select the Key figs tab
Select the key figures you require from the right hand side and move them to the
left -hand column.
Choose the Details: key figure button and enter the InfoCube SALES for the
INVQTY key figure.
Choose the Key fig. aggregatn tab
In the Key fig. column set Forecast and Corrected Forecast to Calculat. type “I”,
and in “Disaggreg. key figure” column set them to APODPANT.
Save and return to Administration of Demand Planning and Supply Network
Planning
3-2 Create time series for your planning area (PLAN##), for version 000, for 24 months in
the past, and 12 months in the future.
Right click on your planning area: Create time series objects

Specify Plng version 000, a start date of two years ago, and for the end date, enter
the date one year from now.
Execute
Exit Administration of Demand Planning and Supply Network Planning
© SAP AG AP210 3-3 6

Unit: Configuration
Topic: Calculating Proportional Factors
4-1 Generate proportional factors for your planning area PLAN## based on the SALES
InfoCube. Calculate fixed proportional factors for plng version 000, and the next 6
months.
Base the calculation on the mean proportional factor in key figure Invoiced sales
quantity from version 000 for the past 6 months.
The pr oportional factor calculation results can be displayed and changed interactively
in the planning table. This function is discussed in more detail in the Interactive
Planning unit.
For the proportion calculation in this example, the system sums the
invoiced sale amount data of the past 6 months. The system then
calculates the mean proportional factor of each characteristic value
combination in this horizon, and saves it in the APODPDANT key
figure.
Demand Planning ? Environment ? Calculate Proportional Factors.

Enter PLAN## as your planning area, and SALES as your InfoCube (in the Basis
for proportion calc.).
Select version 000 on which to calculate the proportional factors.
Choose Planning version 000 in Basis for proportion calc. plus key figure Invoiced
sales quantity, and the period of the last six months.
In Create proportions in horizon enter the next six months.
In Proportion calc. type: choose Calculate fixed proportions in entire horizon.
Select Detailed period overview.
Choose <Execute>.
© SAP AG AP210 3-3 7

Planning Books and Macros
Contents:
? Definition of planning books
? User-defined planning views
? Time Buckets Profile
? Advanced macros
? Default, start, exit macros
? SAP AG 2001
© SAP AG AP210 4-1

Unit Objectives
? Create a planning book

? Configure a user-defined planning view
? Create macros
? SAP AG 2001
© SAP AG AP210 4-2

11 Course Overview
2 InfoCubes
33 Configuration 4
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 4-3

Business Scenario
? Now that InfoCubes and planning areas have been

defined, planning tables can be configured for the
Precision Pump Company demand planners.
? Each planner is assigned the planning books plus
planning views and macros needed to perform the
necessary planning tasks.
? SAP AG 2001
© SAP AG AP210 4-4

Planning Books and Data Views
Planning table 1 Planning table 2
Data view 1 Data view 2
Key figures Key figures

The planning view
also determines the Planning book
horizon and time
buckets for planning
Planning area
? SAP AG 2001
??The most important Demand Planning tool is the planning book. A planning book is based on
information or subgroup of information from a planning area. The demand planner does not maintain
the planning area.
??In the planning book, select the characteristics, and key figures required for the demand planner's
individual tasks.
??Each planning book can contain several views where you can store key figures for detailed analyses
and planning tasks.
??In each view you must also determine the planning horizon and time buckets profile.
© SAP AG AP210 4-5

Planning Books
Selection of your own key figures

from the planning book such as:
User-defined Invoiced sales qty
planning views Incoming order value
Planning Invoiced sales value
area
Promotion 1
Univariate Forecasting
Standard views Causal Analysis
Composite Forecasting
Standard
Manual proportion maintenance
functions
? Multiple books for one planning area

? Planning views determine the planning table layout
? SAP AG 2001
??A planning book contains one or more views on the planning data in the planning area.
??A planning book has both user-specific views and SAP defined standard views.
??To create a planning book, choose Define Planning Book from the Current Settings in Demand
Planning or from Customizing for Demand Planning. An "Assistant" then helps you through all the
necessary steps. Once you have made all your tab page entries, choose 'Continue' and you will go to
the next tab page. Once you have finished processing the various tab pages, you can save the
planning book. To do this choose 'complete', and confirm the each message that appears. The system
saves the planning book and also adds the standard key figures required to execute the chosen
functions (see below).
??You can now go directly from Interactive Planning to Planning Book Maintenance by switching
from Live mode to Design mode.
??The first time you create a planning book, you can only get to the next view by choosing "Continue"
in the wizard. You can only use the tab in change mode.
??When you call up interactive planning for the first time, you go into default planning book 9ADP01
© SAP AG AP210 4-6

Creating a User-Defined Planning View
The planning view

determines the horizon
Planning view: and time buckets for
planning
Macros can be used to

show the previous year's
actual data
You can create macros

to calculate new key
The planning view
figures
determines which key
figures are to be displayed
in interactive planning Row attributes define:
• Planning status • Aggregation/
• Information only disaggregation
• Text
? SAP AG 2001
??Create a view for the planning book. You need at least one view for planning.
??You enter a view description. The data view description appears in the planning book shuffler, to
the left of the interactive planning table.
??You specify the status as either private (1), (the view can only be used by the current user), or
protected (2), which means that other users are not able to change the view, but they can use it as a
create template for their own views.
??You define the planning horizon by entering planning buckets profiles. The planning buckets
profiles must contain either all the periods or a subset of periods from the time buckets profile that
the planning area is based on. If you plan past and future dates, you must enter the planning buckets
profile for past and future. You can specify which part of the historical buckets profile should be
displayed as (i) initial value, and which part (ii), changeable. You specify the start of the future
planning horizon by entering either a date, or an offset. The offset refers to the number of days
between today's date, and the start of the future planning horizon. The period type, i.e. days, weeks,
months etc, is predefined in the future planning buckets profile. By selecting the indicator "horizon",
you can also specify that a column be created to add up all the future horizon values; in the next
release, this column is intended to be used for version comparisons.
??If you wish to use two grids on one screen (for example the capacity view in planning book
9ASNP94), select the indicator next to the second grid title; you can also enter a text for this grid. An
additional tab screen appears in the planning book maintenance assistant where you define the key
figures for the second grid.
© SAP AG AP210 4-7

S&DP Time Buckets Profile
Planning buckets profile

The planning buckets profile defines the periods where data
is displayed and planned in the planning table.
Number of
promotions Basic periodicity Display periodicity
3 M
2 M W
1 W D
1. Calendar year/month 2. Calendar year/month3. Calendar year/month
1. 2. 3. Weeks
Days
? SAP AG 2001
??The planning buckets profile defines:

??which periods are used for planning
??how many periods of each period type are used
??the display sequence of the periods in the planning table
??You can plan according to months, weeks, or (in combination with fiscal year variants) user -defined
periods.
??When creating a planning buckets profile, only use periodicities or a subset of periodicities that have
also been defined in the storage buckets profile that the planning area is based on. Do not include any
periodicity in a planning buckets profile that is not contained within the storage buckets profile.
??Multiple planning buckets profiles, and thus multiple planning horizons can be created for one
planning book. The planning buckets profile is assigned to the data view within the planning book.
This, for example, is how you create three data views for three different users with each view based
on a different planning buckets profile: the marketing department in months, the sales department in
months and weeks, and the logistics department in weeks and days.
??In the example above, the planning horizon is three months. The first two of the three months ar e
displayed in weeks. The first week is displayed in days.
??The first row defines the entire time horizon length, and the following rows define the different
time segments of the horizon. You make specifications in the columns Number, and Display
Periodicity. The contents of the other columns appear automatically, once you have pressed the
Enter key. You see exactly which periods are displayed if you choose List of Periods.
© SAP AG AP210 4-8

Variable Time Buckets
Details Display Display

Week Month In weeks In months
12/99 3/99 12/99 3/99
13/99 3/99 13/99 4/99
13/99 4/99 14/99
14/99 4/99
? Use of multiple time characteristics possible

? Data can be displayed in any of the time buckets in the
storage buckets profile
? Data always stored at detailed level
? SAP AG 2001
??Data is always stored in the smallest periodicity and is aggregated from the time buckets profile
being used.
??You use the planning buckets profiles you created to define the future planning horizon and past
horizon of a planning book. You enter both of these horizons into the planning book. In both
interactive Demand Planning and interactive Supply Network Planning the system shows the
horizons with the smallest period at the start and the largest period at the end. The future horizon
starts with the smallest period (the start date of the planning horizon) and continues processing from
that point onwards, with the largest period at the end. The past horizon starts with the smallest period
(the day before the start of the future horizon) and continues processing from that point backwards,
with the largest period at the end.
© SAP AG AP210 4-9

Macros
? Promotions (unit based / percentage)

? Consensus based forecast
? Overrides
? Sales budgets
? Deviations
? Flexible alerts
? SAP AG 2001
??Advanced Macros are user -defined formulas that can be executed within the grid of a planning book.
They are much like spreadsheet formulas, but provide more flexibility and function better than
typical formulas in spreadsheets.
??The extreme flexibility of the advanced macros allows the planner to model a user-specific planning
environment based on individual business tasks.
© SAP AG AP210 4-1 0

Macro Functions
? Operations on single fields,

rows, columns and areas
? Several steps possible in one
macro
? One step can contain several
arguments
? Control statements such
as if, else if
? Operators such as
(), <>, sin, sqrt, exp, trunc
Invoiced sales
? Functions such as Actual sales
Forecast
SUM, AVG, MAX, MAD, VAR
Corr. Forecast
? Alerts, Mails Profit
? SAP AG 2001
??Among the many functions of advanced macros are options to:

??Control how macro steps are processed through control instructions and conditions.
??Build a macro consisting of one or more steps.
??Control how macro results are calculated through control instructions and conditions.
??Use a wide range of functions and operators.
??Define offsets so that, for example, the result in one period is determine d by a value in the
previous period.
??Restrict the horizon in which the macro is executed to a specific period or periods.
??Write macro results to either a row, or a column, or a cell.
??Write the results of one macro step to a row, column, cell or variable, and use them only in
subsequent iterations, macro steps or macros.
??Analyze forecasting or business data at a glance through the use of special identifying icons.
??Create context- and user -specific planning views.
??Trigger an alert in the Alert Monitor to inform the planner of particular business situations.
© SAP AG AP210 4-1 1

Creating a Macro
? MacroBuilder
? Maintain from planning book design or separate transaction
„Macrobuilder“
M 08.1999 M 09.1999
Elements Events
Actual sales 100 100
Forecast 150 150 Default

Corr. Forecast 150 130 Level change
Start
Exit
Macros
New macro
Step 1
Drag & Drop

Macro work Clipboard
Depot area
? SAP AG 2001
??Macros are a fast and simple method of performing complex mathematical calculations. Macros are
either executed by the user directly, or at a predefined point in time. Defining macros is optional.
??You can edit macros either during planning book maintenance or in Customizing. A macro can either
be created for an entire planning book or for a specific data view. You can also copy macros from
existing books into a new book.
© SAP AG AP210 4-1 2

Creating a Macro
1. Level 2. Level 3. Level 4. Level
1. Macro 1. Step 1. Result Key figure A

+
Key figure B
2. Result Key figure A

* 100
2. Step
2. Macro 1. Step 3. Result Calculation
? SAP AG 2001
??Macros are maintained in four levels:

??The first level contains the different macros.
- In the second level you can subdivide the calculation operations within a macro into different
steps. This corresponds to the use of brackets in mathematical formulae.
??The third level contains the semi-finished results and the end result.
- On the fourth level you define the operands and calculation operations.
© SAP AG AP210 4-1 3

Macro Example
"Adjust demand plan" macro
1. Step
New demand plan =
Corrected forecast
+
Manual adjustments
"Check adjustment" macro
1. Step
IF
Adjustment > 500 (condition)
Manual adjustments
> 500
Enter adjustment <= 500! (procedural message)
ENDIF
? SAP AG 2001
??It
comes with a number of macro examples. To access them, go to the MacroBuilder and select:
Macros for: SAP example and template macros.
??All macros can be imported into planning books.
© SAP AG AP210 4-1 4

Automatic Macro Execution
Event: Read Enter, read, and Planning Save

data save data level change data
Macro
START DEFAULT Level change EXIT
execution:
Time
? SAP AG 2001
??You can specify that a macro is to be carried out automatically for a particular planning book. There
are three ways to execute a macro automatically:
??The start macro is run whenever you call up the planning table.
??The default macro is run whenever you regenerate the planning, (for example, when you press
ENTER), when you open or save the plan. It happens that it is run several times.
??A level change macro is always executed with a drillup or drilldown.
??The exit macro is run immediately before the data is saved.
??To define a macro for automatic execution, drag it over the Default, Start or Exit node.
??If
a macro is not set for automatic execution, it can be executed directly in interactive planning or
mass processing.
??To exclude a start, default or exit macro from the list of macros that can be executed from the
interactive planning screen, select Not directly executable in the macro's attributes.
© SAP AG AP210 4-1 5

Using Macros to Generate Alerts
? In Demand Planning you can define your own alerts using

macros.
? For forecasting there are standard alerts
Macro Execute Alert profile:

macro:
Types of alert
Type of alert Generate Type of alert
Requirement alerts Priority
Alert monitor
?Dynamic alerts
?Database alerts
Display
Evaluation
? SAP AG 2001
??The role of the alert monitor is to inform you about exceptional circumstances that have originated in
your plan. Demand Planning alerts are generated through macros and through the forecast.
??Dynamic alerts are based on the current planning situation but are not stored in the database. One of
the differences that SNP alerts in APO version 3.0 have from those in version 2.0, is that the alerts
are now macro-dependent, and can be used to model data in the liveCache. This alert type is NOT
suitable for large alert quantities, as large numbers reduce performance.
??Database alerts show the planning situation as it was during the planning run, or the last time the
macro was executed. If you are working with large quantities of data, you should perform a batch
planning run using the database macro. The planning run results show the situation as it was at the
time of the planning run. This means that database alerts give a snapshot of the plan during runtime.
??You can also use macros to create customer-specific alert types, dynamic alert types, or database
alert types. To generate alerts in the background, create a planning view using the corresponding
default macro, or use Demand Planning mass processing.
??You must maintain your alert profile if you want to trace alerts from Demand Planning and
Procurement Planning in APO. This profile allows you to maintain a user-specific alert selection for
your area of responsibility.
© SAP AG AP210 4-1 6

Planning Books and Macros: Unit Summary

? Create a planning book
? Configure a user-defined planning view
? Create macros
? SAP AG 2001
© SAP AG AP210 4-1 7

© SAP AG AP210 4-1 8
Exercises
Unit: Planning Books and Macros

Topic: Planning Books

?? Create planning books and data views
1-1 Create a planning book called SALES## for your planning area PLAN##. Enter
“SALES” as planning book text, activate the Manual maintenance of proportional
factors, and all four of the Navigate to views.
Ensure that all the characteristics and key figures from your planning area are added
into the planning book.
Also create a data view called DEMAND PLAN with all key figures. It should have
a history horizon of 24 months and a future horizon of 12 months. The historical
data should be visible in interactive planning. Complete the planning book.
1-2 In the planning book, change the description of the “Invoiced sales quantity” key
figure to ACTUAL SALES.
Also create an auxiliary key figure, ADDITION, with the description LAST
YEAR’S SALES, and assign it to the data view. Change the sequence of the key
figures in the data view by dragging LAST YEAR’S SALES below ACTUAL
SALES.
Auxiliary key figures are only used for displaying in the planning table.
The data in this key figure is neither saved, aggregated, nor
disaggregated.
© SAP AG AP210 4-1 9

1-3 Create a second data view called PROPORTION with the descriptive text
MANUAL MAINTENANCE OF PROPORTIONAL FACTORS for your planning
book SALES##. This view should allow proportional factors to be maintained in
the APODPDANT key figure for the next 12 months.
1-4 Go to interactive demand planning, and select your DEMAND PLAN data view
from the SALES## planning book. Open the planning book and data view selection
window by moving the gray bar on the lower left upwards.
1-5 Check your planning book SALES## with both data views in interactive planning.
Are all the key figures displayed correctly?
Also change to design mode and define the key figures LAST YEAR’S SALES and
PROMOTION as an output key figure.
© SAP AG AP210 4-2 0

Topic: Macros
In this exercise you will create three macros:

1. One macro for mapping sales from the past year
2. One macro for calculating the final demand plan using the sum from
forecast and correction
3. One macro for generating alerts if the correction is too large.
2-1 In the DEMAND PLAN data view, create a macro called LAST YEAR for your
SALES## planning book. This macro copies last year’s actual sales into the current
year’s auxiliary key figure LAST YEAR’S SALES. When you set up the macro make
sure that it is automatically executed whenever changes are made in the planning
table.
2-2 Write a macro called DEMAND PLAN CALCULATION for your SALES##
planning book in the DEMAND PLAN data view that will calculate the final demand
plan from the sum of the corrected forecast, promotion and correction according to the
following formula:
CORRECTED FORECAST + PROMOTION + CORRECTION = DEMAND PLAN
Set the macro so that it is automatically executed whenever a change is made in the
planning table.
2-3 In the DEMAND PLAN data view, create a macro called ALERT for your SALES##
planning book. This macro should generate an alert when the correction in one
column is larger than the corrected forecast.
When you set up the macro make sure that it is automatically executed whenever
changes are made in the planning table.
© SAP AG AP210 4-2 1

2-4 In Interactive Planning check your macros for your SALES## planning book with
the DEMAND PLAN data view. The planning table is not described here as it is
covered in more detail in the next chapter. Open the selection window, and choose
product hierarchy in “show”. Continue. Double click on Hierarchy 0110. The rows
for this selection can now be entered in the planning table.
Also assign the SDP “PUMP” alert profile to your user in interactive planning so
that your alerts will be displayed
2-4-1 Is the actual data from the previous year shown?

2-4-2 In the corrected forecast key figure, enter 100 PC for the current month. Is
the demand plan calculated?
2-4-3 In the correction key figure, enter 200 PC for the current month. Has the
demand plan been corrected? Refresh your alerts, is an alert generated?
Do not save
© SAP AG AP210 4-2 2

Solutions

Topic: Planning Books
1-1 Create a planning book called SALES## for your planning area PLAN##. Enter
“SALES” as planning book text, activate the Manual maintenance of proportional
factors, and all four of the Navigate to views.
Ensure that all the characteristics and key figures from your planning area are added
into the planning book.
Also create a data view called DEMAND PLAN with all key figures. It should have
a history horizon of 24 months and a future horizon of 12 months. The historical
data should be visible in interactive planning. Complete the planning book.
Demand Planning ? Environment ? Current Settings ? Design Planning

Books
Enter SALES## as your planning book and choose create
Enter SALES as your Planning book text, and PLAN## as your Planning area.
Select the Manual maintenance of proportional factors box, and also select all
four of the Navigate to views.
Choose <Continue>, to go to the next tab.
Choose the green “+” button (Add all key figures) to copy all the key figures from
the planning area into the planning book.
Choose the green “+” button (Add all charact.) to copy all the characteristics
from the planning area into the planning book.
Changes can only be made in the “Key fig. attributes” tab once the Planning
Book has been completed.
© SAP AG AP210 4-2 3

In the “Data view” tab, enter Demand Plan as both Data view and Data view
descr. For the future Time Bucket profile enter 12MONTH and for the history
TB profile, 24MONTH. Select “visible from”, and enter the date from 24 months
ago.
Choose the green “+” button (Add all key figures) to copy all the key figures from
the planning area into the data view.
Choose <Complete>, to save the planning book and data view.
Stay in the SDP: Interactive Planning - Initial Screen
1-2 In the planning book, change the description of the “Invoiced sales quantity” key
figure to ACTUAL SALES.
Also create an auxiliary key figure, ADDITION, with the description LAST
YEAR’S SALES, and assign it to the data view.
Change the sequence of the key figures in the data view by dragging LAST
YEAR’S SALES below ACTUAL SALES.
Edit your planning book and choose the first tab, “Key fig. attributes”.
Choose the Invoiced sales quantity key figure (INVQTY), choose “FreeText”,
and enter ACTUAL SALES. Save the settings.
For key figure, enter ADDITION by overwriting the existing key figure, and in
the free text, enter LAST YEAR’S SALES. Save the settings.
Go to the last “Key figures” tab, drag the ADDITION key figure from the right-
hand to the left-hand side of the book, and choose “Complete”.
Stay in the SDP: Interactive Planning - Initial Screen
Auxiliary key figures are only used for displaying in the planning table.
The data in this key figure is neither saved, aggregated, nor
disaggregated.
© SAP AG AP210 4-2 4

1-3 Create a second data view called PROPORTION with the descriptive text
MANUAL MAINTENANCE OF PROPORTIONAL FACTORS for your planning
book SALES##. This view should allow proportional factors to be maintained in
the APODPDANT key figure for the next 12 months.
Edit your planning book.

Select Data view, enter PROPORTION; and choose Create.
Go to the “Data view” tab, and for the Data view description enter MANUAL
MAINTENANCE OF PROPORTIONAL FACTORS, with a future Time Buckets
profile of 12MONTH. Go to the last “Key figures” tab, and drag the
“Proportional factor” key figure from the right-hand to the left-hand side of the
book. Press “Complete”.
Exit the SDP: Interactive Planning - Initial Screen.
1-4 Go to interactive demand planning, and select your DEMAND PLAN data view
from the SALES## planning book. Open the planning book and data view selection
window by moving the gray bar on the lower left upwards.
Demand Planning ? Planning ? Interactive Demand Planning
Drag the bar from the lower left-hand window upwards to open the planning
book window.
Expand the planning book SALES## and double click on your data view.
Stay in Interactive Planning.
1-5 Check your planning book SALES## with both data views in interactive planning.
Are all the key figures displayed correctly?
Also change to design mode and define the key figures LAST YEAR’S SALES and
PROMOTION as an output key figure.
Double click on each of your data views in turn. Are all of your key figures
displayed correctly?
You open Design mode by choosing “Design”. Right click on the LAST YEAR’S
SALES, and PROMOTION key figures, and choose Selected Rows ? Output
only. The rows are grayed out.
Return to interactive planning via the “live” button, and save everything. They
are only colored after data selection.
Exit interactive planning.
© SAP AG AP210 4-2 5

© SAP AG AP210 4-2 6
Topic: Macros
In this exercise you will create three macros:

1. One macro for mapping sales from the past year
2. One macro for calculating the final demand plan using the sum from
forecast and correction
3. One macro for generating alerts if the correction is too large.
2-1 In the DEMAND PLAN data view, create a macro called LAST YEAR for your
SALES## planning book. This macro copies last year’s actual sales into the current
year’s auxiliary key figure LAST YEAR’S SALES. When you set up the macro
make sure that it is automatically executed whenever changes are made in the
planning table.
Demand Planning ? Environment ? Current Settings ? MacroBuilder

Enter the Planning book and data view.
Drag the macro from the Elements window in the top left-hand corner, and drop
it onto macros in the central window. In the dialog box, enter LAST YEAR as the
name of the macro. Continue.
Drag the step from the Elements window and drop it over your new macro in the
central window. In the descriptive text section of the dialog box, enter 1. STEP
and reduce the Processing area to the past 12 months. Continue.
Drag a planning table row from the Elements window and drop it over your 1.
Step in the central window. In the Attributes of results row section of the dialog
box, choose LAST YEAR’S SALES and define the current month as the start of
calculation. Continue.
Drag a planning table row from the Elements window and drop it over your
results row in the central window. Choose “Create in next level”. Enter ACTUAL
SALES as the row in the dialog box. Continue.
Select your macro and first choose Check, and then Generate
Drag the macro from the central window, and drop it over DEFAULT in the
Events window, in the top right-hand corner of the screen.
Stay in the MacroBuilder
© SAP AG AP210 4-2 7

2-2 Write a macro called DEMAND PLAN CALCULATION for your SALES##
planning book in the DEMAND PLAN data view that will calculate the final
demand plan from the sum of the corrected forecast, promotion and correction
according to the following formula:
DEMAND PLAN = CORRECTED FORECAST + PROMOTION +
CORRECTION
Set the macro so that it is automatically executed whenever a change is made in the
planning table.
it onto macros in the central window. In the dialog box, enter DEMAND PLAN
CALCULATION as the name of the macro. Continue.
central window. In the descriptive text section of the dialog box, enter 1. STEP
and reduce the Processing area to the next 12 months. Continue.
Drag a planning table row from the Elements window and drop it over your 1.
Step in the central window. Enter FINAL FORECAST as the row in the dialog
box. Continue.
results row in the central window. Choose “Create in next level”. Enter
CORRECTED FORECAST as the row in the dialog box. Continue.
Drag the Operator/function from the Elements window and drop it over your
CORRECTED FORECAST row in the central window. Use "Append". Operator
“+“ is selected already, continue.
Operator in the central window. Use "Append". Enter CORRECTION as the
row in the dialog box. Continue.
CORRECTION row in the central window. Use "Append". Operator “+“ is
selected already, continue.
Operator in the central window. Use "Append". Enter PROMOTION as the row
in the dialog box. Continue.
Stay in the MacroBuilder
© SAP AG AP210 4-2 8

2-3 In the DEMAND PLAN data view, create a macro called ALERT for your
SALES## planning book. This macro should generate an alert when the correction
in one column is larger than the corrected forecast.
When you set up the macro make sure that it is automatically executed whenever
changes are made in the planning table.
it onto macros in the central window. In the Descriptive text section of the dialog
box, enter ALERT. Continue.
central window. In the Descriptive text section of the dialog box, enter 1. STEP.
Continue.
Drag a Control statement from the Elements window and drop it over your 1. Step
in the central window. Choose “Create in next level”. The “IF” condition is
selected already, continue.
Drag a Condition from the Elements window and drop it over your Control
statement in the central window. Use "Append". Enter “Correction > Corr.
Forecast” as the descriptive text in the dialog box. Continue.
results row in the central window. Choose “Create in next level”. Enter
CORRECTION as the row in the dialog box. Continue.
CORRECTION row in the central window. Use "Append". Choose Operator “>”,
continue.
Operator in the central window. Use "Append". Enter CORRECTED
FORECAST as the row in the dialog box. Continue.
Drag the Alert/status from the Elements window and drop it over your condition
in the central window. Use "Append". Enter “Correction > Corr. Forecast” as
the descriptive text in the dialog box. Continue.
Drag a Control statement from the Elements window and drop it over your Alert
in the central window. Choose “Append”, and choose “ENDIF” as reference,
continue.
Save and leave the MacroBuilder
© SAP AG AP210 4-2 9

2-4 In Interactive Planning check your macros for your SALES## planning book with
the DEMAND PLAN data view. The planning table is not described here as it is
covered in more detail in the next chapter. Open the selection window, and choose
product hierarchy in “show”. Continue. Double click on Hierarchy 0110. The rows
for this selection can now be entered in the planning table.
Also assign the SDP “P UMP” alert profile to your user in interactive planning so
that your alerts will be displayed
2-4-1 Is the actual data from the previous year shown?

2-4-2 In the corrected forecast key figure, enter 100 PC for the current month. Is
the demand plan calcula ted?
2-4-3 In the correction key figure, enter 200 PC for the current month. Has the
demand plan been corrected? Refresh your alerts, is an alert generated?
Do not save.
Double click on the DEMAND PLAN data view for your SALES## planning
book
Open the selection window, and choose product hierarchy in “Show”. Continue.
Double click on Hierarchy 0110. The rows for this selection can now be entered
in the planning table.
Also assign the SDP “PUMP” alert profile to your user in interactive planning so
that your alerts will be displayed:
Settings ? Assign alert profile
Do not save and exit interactive planning
© SAP AG AP210 4-3 0

Interactive Planning
Contents:
? Selection
? Navigation within the planning table
? Interactive proportional factor maintenance
? Fixing of values
? Collaborative planning
? SAP AG 2001
© SAP AG AP210 5-1

Unit Objectives

? Create characteristic value combinations
? Navigate within the planning table
? Maintain planning data on different levels, and
identify the disaggregation mechanisms
? Describe the use of proportional factors
? Access planning from the Internet
? SAP AG 2001
© SAP AG AP210 5-2

11 Course Overview
22 InfoCubes
33 Configuration
55 Interactive Planning 5
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 5-3

Business Scenario
? After the planning table layout has been set using

the planning book, the demand planner from the
Precision Pump company explores the data entry,
and data analysis possibilities.
? Discussions are also taking place regarding which
customers or international subsidiaries would
benefit from being able to enter data over the
Internet.
? SAP AG 2001
© SAP AG AP210 5-4

The Planning Table Selection Range
Change between areas: InfoObjects, Data views

Macro area and overview
Open the Shuffler. In the Shuffler you make selections
and save new selections
ID Object Text Display dependent objects; For example, all the products from
Object 1 Text 1 one particular brand
Object 2 Text 2
Select all characteristic values in InfoObject area
Object 3 Text 3
Object 4 Text 4 Deselect all characteristic values in InfoObject area
Selection profile
User Go back to last selection
Selection ID Re-execute last selection
Define the format to be used to display the
characteristic values in the InfoObject area
Planning books
Display current selection
Data views
Hide selection range
Macros
? SAP AG 2001
??The Shuffler is the window, where you choose the InfoObjects to be planned. You choose
information types that fulfil particular conditions from the selection statement dropdown boxes
(show... that meet the following conditions...).
??In the selection profile you are shown which selection IDs the present planner is working with. The
demand planner can access commonly used selections quickly using the selection profile. To add
selection IDs to the selection profile click on Selection Profile.
??Inthe data view area, choose your planning books, and data views. When all the available planning
books can be seen, the planner has access to planning books used in Supply Network Planning, as
well as in Demand Planning.
??The component area displays the macros that are active for all the data views in this planning book
including this data view.
© SAP AG AP210 5-5

Data Selection
Object selection Characteristic values

that should be selected
Show: APO Products
that meet the following conditions:

APO version 000
Customer Baker Criteria, by which
the characteristic values
should be selected
User
Selection 1 P-100
Selection 2 P-101
P-101
Selection 3
? SAP AG 2001
??The Shuffler is the window, where you choose the InfoObjects to be planned. You choose
information types that fulfil particular conditions from the selection statement dropdown boxes
(show... that meet the following conditions...).
© SAP AG AP210 5-6

Aggregation and Disaggregation
1. Select your characteristic values and

planning version.
2. Load the data for one or more

characteristic values.
3. The key figures are aggregated and

displayed for the characteristic values
and version in your selection.
Planning
Disaggregation
4. Create or change your plan.
Aggregation
5. The key figures are disaggregated
automatically using the
characteristics combinations in the
fact table.
? SAP AG 2001
??You choose the data you want to plan by selecting characteristic values and the version number.
??Once you have loaded the data, an aggregate view of the selected data is displayed in the interactive
planning screen.
??When you save the data, it is automatically disaggregated and stored at the detailed level.
??To store selections (characteristic values and versions) that are used on a regular basis, you define
selection variants. These variants can be organized into folders. A delete function is also available
for selection variants.
© SAP AG AP210 5-7

The Planning Table Work Area
Selected objects Header information
APO Product Total APO Product Total

ID Object Text Design Graph Capacity Leveling
Object 1 Text 1 Title view W 24 W 25 W 26 W 27 W 28

Object 2 Text 2 Key figure
Key Load 1
figure current
2 selection data in table
Object 3 Text 3
Key figure 3
Switch from live to design mode
Object 4 Text 4
Key figure 4
Selection profile Switch from table to graphic view
Key figure 5
User Save graphic settings
Selection ID
Use distribute function
Save displayed data in Excel

Planning book Send displayed data to another user
Data views
Show/hide/refresh alerts
Open the alert monitor and note management
Macros
Maintain/display a note for a point in the graphic
Display one key figure, some key figures, or all the key figures
? SAP AG 2001
??The work area is the key display, and planning area. It is situated on the right hand side of the screen,
and consists of one table, and one graphic. By default, only the table is shown.
??To display data on selected objects in the work area, double click on the selected object. If you have
selected multiple objects, choose Load data.
??You can use the magnifying glass icon to set the planning view key figures to be shown in the work
area.
??You can send plans internally or externally via email if the system is connected to a mail server. The
system automatically creates a Microsoft Excel attachment containing the plan.
© SAP AG AP210 5-8

Drill Down in Interactive Planning
Current selection:
Customer Product
Region
Region
Product
Customer
? SAP AG 2001
??Demand Planning's method of aggregation and disaggregation is referred to as a "consistent"

planning model. The drill up/down functions in the selection tree allow you to navigate through the
various characteristic combinations and display the matching key figure values.
??You can drill down or drill up through one or multiple levels, in any sequence; that is, the process is
not hierarchical.
© SAP AG AP210 5-9

Navigation Within the Work Area
Header information
Product Total Location Total
Shows the
details in sequence ?Total ?Total
details (all) details (all)
?P-100 ?DC 2400
?P-101 ?DC 2500
Shows all ?P-102
the details in one
overview
Title view Right mouse click: Choose key figure

Swap rows/columns
Synchronize table/graphic
Units of measure
Graphic
Pivot sorting
? SAP AG 2001
??To set header information, choose Settings -> Header Information from the planning table.
??You can display your characteristic values in sequence using the arrows in the header information.
The total shows you the total of your data in the work area. If you choose details (all), you will see
an overview of everything that is in your work area.
??With Swap rows/columns, you can arrange the periods vertically. Synchronize table and graphic is
used to arrange the same periods below one another.
??Pivot sorting allows the sequence of key figures and characteristic values to be set in the View of all
details.
© SAP AG AP210 5-1 0

Interactively Changing Proportional Factors
? Version dependent Product family

? Period specific (optional) 70 % 30 %
? Stored in APODPDANT
Product A Product B
? Maintained in planning table
50 % 50 %
Plant A Plant B
? SAP AG 2001
??For the basis of the automatic calculation you have to specify the version, the key figure and the
horizon.
??You also have to specify for which version the proportional factors are to be calculated and for
which horizon.
??Ifyou select "detailed proportions" the systems uses for example the proportions of June 98 to
calculate the proportions of June 99 and so on.
??You can also maintain the proportional factors via the planning table.
© SAP AG AP210 5-1 1

Planning Grid Basic Functions
Distribute functions
Operator
Swap Rows/Columns OP Short text
= Replace time series values by value
Synchronize table/graphic + Add value to time series
- Minus value from time series
Change units of measurement * Multiply time series values by value
Pivot sorting / Divide time series values by value
% Value as a percentage of the time series
etc. ...
Locked entries Row totals
? Total
? SAP AG 2001
??You can swap columns with rows, synchronize table and graphic, change units of measurement, and
perform pivot sorting by right clicking.
??A wide range of distribution functions is available for speedy data entry.
??When you start to plan, the selected data is locked. Other planners can work on other characteristic
values and versions in the same InfoCube simultaneously.
??You can insert a column for row totals either in interactive planning or in the planning book.
© SAP AG AP210 5-1 2

Notes in Demand Planning
? Note Management
? Entering a note
? Note navigation
Demand Plan UN M 08.1999 M 09.1999

Actual sales Box 100 100
Forecast Box 150,150
Corr. Forecast Box 150,130
1. Right mouse
key -> Display
Note
(Forecast/199908)
No note available
Select to see
administration
information
2. Enter your
note here
? SAP AG 2001
??You use notes when you want to explain (for your own information or for another demand planner),
the reasons why a sales forecast, for example, is particularly low or high at a particular period and on
a particular level.
??You can drill down from a higher level to a note on a lower level using note navigation. You use this
option when you (as demand planner), are working at a higher level (for example, at Region level),
and want to display the forecast explanations created by a different planner at a lower level (for
example, at Product level).
© SAP AG AP210 5-1 3

Value Fixing
Planned total sales: Planned total sales: changed to

20,000 pcs 30,000 pcs
3,000 5,000 3,000 9,545

(15%) (25%) 3,000 (10%)
3,000 (32%)
(10%)
(15%)
3,000
3,000 6,000 (10%)
11,454
(15%) (30%) (38%)
? SAP AG 2001
??You can fix the value of a key figure in interactive planning before running the forecast. Once fixed
this value will not change when you change other values of this key figure at other planning levels.
Where a change to the sum of the details' values conflicts with the individual details' values, the
values of the details take precedence.
??Prerequisite 1: you have already created an APO key figure in the Administrator Workbench and
assigned it a fixed key figure. Prerequisite 2: If you want to fix values at aggregated levels, you
must define an aggregate for this level in your planning object structure.
??To fix a key figure value, right click on the key figure value's cell. The color changes red and a
padlock icon appears, indicating that this value is now fixed.
??To undo the fixing of a key figure value, right click once again on the cell.
© SAP AG AP210 5-1 4

Collaborative Planning
APO Collaboration C
Engine APO Collaboration Client
O
Advanced M
Alert Monitor Planning books, selections, alert
Macros M
monitor
Planning U
Internet/Intranet
books
N
I
Planning Areas
C
InfoCubes and time series A
Administration T
component I
O
L A Y E R: N
R/3 systems APO systems Others
? SAP AG 2001
Collaborative planning prer equisites:

?? Set up an ITS server for your system and publish the CLP* Services
?? Inthe APO system, maintain the WEB_SERVER in the table TWPURLSVR for the logical system,
"IGOTO-800.WDF.SAP-AG.DE:1080", for example, and the WEB_PROTCL "HTTP".
?? You follow the menu path: Demand Planning->Planning->Collaborative Demand Planning, to go to
the Internet and the relevant Internet address. You then inform the user of this address.
?? Planning prerequisites:
??You have assigned a planning book to the user and have given auth orization
?? You have assigned selection variants to the user
??You have set up planning table header information for the user, if drilldown is required
?? In order to be able to enter data in the internet, press the change switch at the bottom right of the
planning table
© SAP AG AP210 5-1 5

Interactive Planning: Unit Summary

? Create characteristic value combinations
? Navigate within the planning table
? Maintain planning data on different levels, and
identify the disaggregation mechanisms
? Describe the use of proportional factors
? Access planning from the Internet
? SAP AG 2001
© SAP AG AP210 5-1 6

Exercises
Unit: Interactive Planning

Topic: Selections
The aim of this exercise is for you to explore the functions of interactive
planning. The data that you enter here will not be used in any of the later
exercises.
This exercise is subdivided into the following categories.
1. Creating selections
2. Configuring header information and the key figure view.
3. Fixing key figure values
4. Manual proportional factor maintenance
1-1 Selections are made to enable fast access to characteristics combinations that are used
on a daily basis. Therefore in your SALES## planning book in the DEMAND PLAN
data view in Interactive Planning, create a selection called PRODUCT## for version
000 and create products P-102 to P-104. Assign this selection to your selection
profile.
Which sold-to parties buy product P -102?
Load data for all three products into the planning table and distribute 1000 pieces over
the next 4 months for the Corrected Forecast key figure.
Show the row totals for the future columns.
© SAP AG AP210 5-1 7

© SAP AG AP210 5-1 8
Topic: Header Information and Key Figure View
The aim of the following exercises is for you to explore the navigation functions in the
planning table. Do not save the entered planning data.
2-1 In the planning table, choose the Corrected forecast and Last year’s sales key figures
only.
2-2 In the planning table, set the header information so that you can navigate through
products and sold-to party. D isplay all the product details.
Check aggregation and disaggregation for the Corrected forecast key figure. If you
change data at detailed level, the changes will also be aggregated up to the totals level.
If you change data at the totals level, the changes will be disaggregated and made at
detailed level too. The new detail ratio will be incorporated as the planning area is set
so that the key figure “Pro rata” is disaggregated.
2-3 Use pivot sorting to display first the products and then the key figures.
© SAP AG AP210 5-1 9

© SAP AG AP210 5-2 0
Topic: Fixing Key Figure Values
3-1 Call up the key figure view for the Correction key figure for the three products and
perform a drilldown according to product.
Enter 100 pieces as the total in one period and fix the value of one detail value. At the
totals level enter 120 pieces instead of 100 and check that the fixed value remains the
same.
Return to the totals display (drill up), and enter a comment on the corrected value.
© SAP AG AP210 5-2 1

© SAP AG AP210 5-2 2
Topic: Manual Proportional Factor Maintenance
4-1 In the “Configuration” chapter you have already calculated the proportional factors
based on actual data. In your PROPORTION data view for product P-102, and for the
fifth month of the future, change the calculated percentage proportion for sold-to party
(customer) 1000. Save.
Return to the DEMAND PLAN data view and for the Corrected forecast key figure in
the fifth month, enter 1000 pieces for product P-102. Execute a drill down according
to sold-to party. Were your new proportional factors used for the disaggregation?
© SAP AG AP210 5-2 3

© SAP AG AP210 5-2 4
Solutions

Topic: Selections
The aim of this exercise is for you to explore the functions of interactive
planning. The data that you enter here will not be used in any of the later
exercises.
This exercise is subdivided into the following categories.
1. Creating selections
2. Configuring header information and the key figure view.
3. Fixing key figure values
4. Manual proportional factor maintenance
1-1 Selections are made to enable fast access to characteristics combinations that are used
on a daily basis. Therefore in your SALES## planning book in the DEMAND PLAN
data view in Interactive Planning, create a selection called PRODUCT## for version
000 and create products P-102 to P-104. Assign this selection to your selection
profile.
Which sold-to parties buy product P -102?
Load data for all three products into the planning table and distribute 1000 pieces over
the next 4 months for the Corrected Forecast key figure.
Show the row totals for the future columns.

If necessary double click on the DEMAND PLAN data view for your SALES##
planning book
Click on the “Selection window” icon, and in “Show” choose APO - product. In
the lower section you can now store conditions for the products. Version 000 is the
default version.
In the next row, again choose product and enter the three products in the right-
hand side.
Press the “Save selection” icon, and write “PRODUCT##” as the Selection
description. Save.
© SAP AG AP210 5-2 5

In order to enable fast access to this selection, assign the selection to the selection
profile by clicking on the Selection Profile button. A dialog box appears where you
can drag your selection from the right-hand side into your book. Save.
To find the sold -to party for product P-102, select the product, click on the “Display
dependent objects” icon, and choose Sold-to party.
Click on the “Previous selection” icon, and select the three products by clicking on
the “Select all” icon. Now click on the “Load data” icon. You will now be able to
enter data for this selection in the planning table rows.
Highlight the next four periods using the left mouse button. Press “Distribute”,
check the horizon, enter 1000 pieces for the Corrected Forecast key figure and
choose Operator “==” (the value will then be distributed over all the cells). Press
“Distribute” (the green check mark).
To find the row totals go to Settings ? Row totals ? Future

Stay in interactive planning for the next exercise
© SAP AG AP210 5-2 6

Topic: Header Information and Key Figure View
The aim of the following exercises is for you to explore the navigation functions in the
planning table. Do not save the entered planning data.
2-1 In the planning table, choose the Corrected forecast and Last year’s sales key figures
only.
Press the magnifying glass (key figure selection) that is above the planning table
and choose the Corrected forecast key figure followed by Last year’s sales.
2-2 In the planning table, set the header information so that you can navigate through
products and sold-to party. D isplay all the product details.
Check aggregation and disaggregation for the Corrected forecast key figure. If you
change data at detailed level, the changes will also be aggregated up to the totals level.
If you change data at the totals level, the changes will be disaggregated and made at
detailed level too. The new detail ratio will be incorporated as the planning area is set
so that the key figure “Pro rata” is disaggregated.
Fix the value of a detail and change the value at totals level: unfixed values are not
disaggregated.
Go via Settings ? Header information and choose the characteristics Product and
Sold-to party. A navigation bar now appears above the planning table (if it does not
appear click on the “Header on/off” icon). You can now use the different functions
on the navigation bar to set characteristic value totals, single characteristic values,
or a characteristic value overview (all details). Check aggregation and
disaggregation in the overview.
2-3 Use pivot sorting to display first the products and then the key figures.
Right click on the field in the upper left-hand side of the planning table, and choose
Pivot sorting. In the dialog box, drag Product so that it is above Key figure.
Continue.
© SAP AG AP210 5-2 7

© SAP AG AP210 5-2 8
Topic: Fixing Key Figure Values
3-1 Call up the key figure view for the Correction key figure for the three products and
perform a drilldown according to product.
Enter 100 pieces as the total in one period and fix the value of one detail value. At the
totals level enter 120 pieces instead of 100 and check that the fixed value remains the
same.
Return to the totals display (drill up), and enter a comment on the corrected value.
Enter 100 pieces in one of the Correction key figure periods.
Choose the Correction key figure only and drill down according to product by
choosing All details in the product header information.
To fix values in the planning table or to store notes, right click on the appropriate
field.
Fix the value of a detail using the right mouse button
Enter 120 pieces instead of 100 and check that the fixed value remains the same.
Execute a drill up according to product by choosing “Total” in the product header
information.
Store a note for the fixed value using the right mouse button.
© SAP AG AP210 5-2 9

© SAP AG AP210 5-3 0
Topic: Manual Proportional Factor Maintenance
4-1 In the “Configuration” chapter you have already calculated the proportional factors
based on actual data. In your PROPORTION data view for product P-102, and for the
fifth month of the future, change the calculated percentage proportion for sold-to party
(customer) 1000. Save.
Return to the DEMAND PLAN data view and for the Corrected forecast key figure in
the fifth month, enter 1000 pieces for product P-102. Execute a drill down according
to sold-to party. Were your new proportional factors used for the disaggregation?
Double click on the PROPORTION data view for your SALES## planning book.
Do not save the entered data.
Load the data for product P -102.
Switch the data display from absolute (unit-based) to percentage based by choosing
the Double Sum icon above the planning table.
Execute a drill down according to Sold-to party by choosing “All details” in the
Sold-to party header information.
Change the proportion of a sold-to party in the fifth month. Save.
Double click on the DEMAND PLAN data view for your SALES## planning book.
Load the data for product P -102.
For the Corrected Forecast key figure, in the fifth month, enter 1000 pieces. If
planning data is already present here, first change it to 0, press enter and then
change it to 1000 pieces.
Choose the Corrected forecast key figure only and drill down according to sold -to
party by choosing “All details” in the Sold -to party header information.
The sold -to party proportions should now reflect the changed proportions.
Exit interactive planning without saving.
© SAP AG AP210 5-3 1

Forecasting
Contents:
? Multiple Linear Regression (MLR) & Causal Analysis
? Composite forecasting
? Consensus-Based Forecasting
? Forecast Profile
? SAP AG 2001
© SAP AG AP210 6-1

Unit Objectives
? Configure the forecast profile using relevant

control parameters and forecast errors
? Describe the differences between the various
forecasting methods and models for Univariate
Forecasting, Causal Analysis, and Composite
Forecasting
? Perform forecasts in the APO system
? SAP AG 2001
© SAP AG AP210 6-2

11 Course Overview
22 InfoCubes
33 Configuration
66 Forecasting
6
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 6-3

Business Scenario
? The Precision Pump company first investigates

which of the forecasting techniques they should
use.
? The demand planner then uses the various
forecast models interactively to analyze the
forecasts for his characteristic value
combinations. He then sets the forecast profile for
mass processing.
? The real forecasting is then done periodically
using mass processing and is revised using
forecast alerts.
? SAP AG 2001
© SAP AG AP210 6-4

Automatic Historical Data Aggregation
History Future
Product level
Forecast
150 pieces 180 pieces
Disaggregation based on
proportional factors
Customer level
100 pieces 50 pieces 120 pieces 60 pieces
? SAP AG 2001
??If you carry out the forecast at a high level, the historical data is automatically aggregated.
??For this reason, the forecast results of a forecast run at a high level (with the results then
disaggregated to detailed level) will differ from the results of a forecast run at detailed level.
??Ifyou carry out the forecast in the background, you define the aggregation level for forecasting in
the mass processing job.
??When you design your planning process, you need to consider what aggregation level is meaningful
from a forecasting perspective; for example do you want to forecast individual products, product
families or customer specific demands?
© SAP AG AP210 6-5

Assigning Products to Forecast Profiles
Characteristic combinations: Master Forecast Profile:
A - Products Profile A
B - Products Profile B
C - Products Profile C
Set interactively
and use in mass
processing
? SAP AG 2001
??The forecasting methods used to plan important products (A products), are usually m ore detailed
than those used for less important products (B, and C products).
??There are various ways of assigning characteristic combinations:
??You set up your master forecast profile interactively, and assign selection IDs to it in mass
processing.
??You then save the assignment that you interactively set up, and use it in mass processing.
??When saving a selection ID's demand plan data you get the system to create it a forecast profile
with a unique name. This has the following two advantages:
- The next time you work with this selection ID, the system uses the uniquely named forecast
profile by default to create the forecast.
- If you make changes to the forecast configuration, (by switching from a seasonal model to a
seasonal trend model for example), the system then keeps the new settings without overwriting
the original forecast profile. If you do not set this indicator, the original forecast profile will be
overwritten with the new settings once you save the interactive planning data.
© SAP AG AP210 6-6

Master Forecast Profile
? Planning area assignment

Forecast profile
? Definition of the key figure that
will be forecasted
? Horizon definition for history and
forecast
? Specification of procedure to be Univariate profile
used for the following forecasts:
MLR Profile
? Composite Forecasting
Composite profile
? SAP AG 2001
??The planner interactively defines various master forecast profiles to forecast typical historical time
series showing the constant, trend, or seasonal patterns.
??Ifdifferent key figures are to be forecasted, you must have master profiles for each key figure to be
forecasted.
??The period indicator defines the forecast's period pattern. It must refer to a time characteristic that
has actual data
??Material forecast: this is used for lifecycle planning and/or "like" modeling.
??Forecast horizon: the start and end dates of the horizon for which you want to run the forecast. Enter
a start date in combination with either an end date or a number of periods. If you do not enter a start
date, you must enter a number of periods; the system then uses the current date as the start of the
forecast horizon.
??History horizon: the start and end dates of the historical time horizon, the actuals from which will be
used to run the forecast.
??You assign a master forecast profile with a univariate forecast profile and/or an MLR profile and/or a
composite profile.
© SAP AG AP210 6-7

Statistical Forecasting Tools
? Univariate Forecasting Model

? Causal Analysis
Forecast
? SAP AG 2001
and with different demand types. There is no such thing as a forecasting model that creates 100
percent accurate statistical forecasts for both mature slow-moving products and new products.
Approaches that attempt to cover most of such demand types are very complex and tend to be a
"black box" for the planner. APO Demand Planning offers a "toolbox" of all practical, proven
forecasting methods. The system allows the planner to choose the best method for a specific demand
type.
??Univariateforecasting models are models that investigate the historical data from constant, trend,
and seasonal patterns, and then issue relevant forecast errors.
??Causal analysis is based on causal factors such as prices, budgets, and campaigns. The system uses
multiple linear regression (MLR) to calculate the influence causal factors had on the sales history,
and thus allows an analysis to be made of the success of specif ic actions. The connection between
causal factors and sales history that was calculated is then used as a basis for modeling future
actions.
??Composite forecasting is used to weight multiple forecasts, and then bring all the information
together in one fina l forecast.
© SAP AG AP210 6-8

The Forecasting Procedure
Reading
Reading Corrected
Corrected ? Actuals can be adjusted both
the
the History
History automatically and manually
actuals
actuals
? Analysis of historical data
helps to predict future patterns
? Usage of proven forecasting
Forecast
Forecast models
? Automatic model selection can
be used
Corrected
Corrected ? Graphic monitoring and
forecast
forecast correction of historical data,
and forecast results
Used
Used as
as demand
demand plan
plan
? SAP AG 2001
??Forecasting is a tool used to predict future activity based on specific criteria. The system reads
historical data and calculates values which it proposes as future data.
??You can create statistical baseline forecasts based on any key figure (such as invoiced sales) in any
version.
??The forecast can be calculated using actuals or corrected historical data.
??The corrected forecast includes workday adjustment.
??You usually make manual corrections to the statistical forecast in your own key figure.
??Ifyou do not have any historical data for a product (for example, because it is new), you can base the
forecast on the actuals of a "like" product or products. For this purpose, you define a "like" profile in
the product master record.
??If you want to correct your historical and forecast data, you must define which key figures you want
to use in current settings "define parameters for InfoCubes". You must also include rows for these
key figures in your planning book.
© SAP AG AP210 6-9

Actuals Adjustment
Actual sales key figure
Delivery Trade fair sales

problems
Corrected history key figure

Sales
Correction
Time
? SAP AG 2001
??In order to generate more exact forecasts, the impact of one-time promotions, or delivery problems
must be removed from the actuals. These adjustments are not usually executed in the original key
figure, but in the adjusted history key figure.
??Inthe forecast profile you can define whether the forecast should be based on original actual data or
on corrected actual data.
??Automatic adjustment of corrected history
??This allows you to base your forecast on the Corrected history key figure if no forecast has been
carried out for a long time.
??For periods where there is no corrected history in the database, the system uses the original
history.
??It is July 1st and you have not created any forecasts over the past two months. The corrected
history from two months ago contains manual corrections that you do not want to lose. Your
corrected history therefore contains no values for May or June.
??If the system were to base the forecast on these historical values, the forecast results would be
inaccurate because of the zero values from May and June.
??To exclude the possibility of such inaccuracies, you must set the key figure Automatic adjustment
of corrected history. The system will then use the original historical values for May and June.
© SAP AG AP210 6-1 0

Actuals Adjustment
Original actuals
1. Phase In/Out profile

2. Workday adjustment
3. Past promotions
4. Outlier correction
5. Manual adjustments
Corrected history
? SAP AG 2001
Various automatic procedures that you activate in the forecast profile, can be used to adjust the actuals.
?? The procedures are executed in the above sequence.
??The lifecycle planning phase in/out profiles control the phase ins of new products, and the phase
outs of old products
??Workday adjustment ensures that higher values are forecasted for periods that have many
workdays. Historical data must be adjusted to take this into account
??With promotion planning you can extract past actions (special offers etc.) from the actuals so that
they are not included in the forecast
??You can use outlier correction to automatically correct actuals that are outside of the tolerance
range.
??You can also adjust the actuals manually
?? A key figure to be forecasted can also be assigned the following elements:
??A key figure for storing corrected history
??A key figure for storing the corrected forecast
??A key figure for storing ex-post forecasts
??A key figure for storing ex-post forecasts for the MLR
© SAP AG AP210 6-1 1

Univariate Forecasting Model
? Supports constant, trend, and

seasonal patterns
? Available tools:
? Manual forecasting
? Moving average
? Simple linear regression
Forecast
? Exponential Smoothing
? Holt-Winters
? Croston method
? SAP AG 2001
??Times series models are more commonly referred to as univariate models.

??Time series models develop forecasts by assessing the patterns and trends of past sales. The key
determinant in the selection of a time series model is therefore the pattern of previous sales data. The
general premise is that future sales will mimic past sales. Past sales patterns are identified and
reproduced in the forecast. Once the pattern is identified, the forecaster can select the time series
model best suited to that particular pattern. For example, if there is a seasonal influence in past sales
(for example, sales are consistently highest in October and April), then a forecasting model that
compensates for seasonality should be used (i.e. classical decomposition or Winters' method). If past
sales have small fluctuations with no major pattern or trend, then some type of smoothing model
(moving average or exponential smoothing) might be best.
??Time series techniques all have the common characteristic that they are endogenous methods. This
means that a time series model looks only at the patterns of the history of actual sales (or a series of
sales through time, hence the term time series). If these patterns can be identified and projected into
the future, you can use them to produce a forecast. Time series models are the most commonly used
forecasting methods.
© SAP AG AP210 6-1 2

Automatic Model Selection
Forecast
Forecastmodel
model
Constant
Constant
Moving
Movingaverage
average
Weight.
Weight.mov.
mov.average
average
Manual Trend
Trend
Season
Season
Trend
Trendand
andseason
season
Copy
Copyhistory
history
Croston
Croston
Model
Modelselection
selection
Automatic Test
Testusing
usingtrend
trend
Test
Testusing
usingseason
season
Test
Testusing
usingtrend
trendand
andseason
season
? SAP AG 2001
??Automatic Model Selection: you can instruct the system to select the most suitable forecast model. In
order to make this selection, the system analyzes the historical data. If the system cannot detect any
clear pattern in the historical data, it automatically selects the constant model.
??Procedure 1: if you want the system to select the forecast model, you can choose between various
statistical tests and test combinations which determine the model. To use procedure 1, set one of the
forecast strategies 50-55 in the univariate forecast profile. Which strategy you choose, and which test
the system should carry out, depends on the historical data.
??In the trend test, the system subjects the historical values to a regression analysis and checks to see
whether there is a significant trend pattern.
??In the seasonal test, the system clears the historical values of any possible trends and then carries
out an autocorrelation test.
??Procedure 2: the system calculates the models to be tested using various combinations for alpha,
beta, and gamma. The smoothing factors are also varied between 0.1 and 0.5 in intervals of 0.1. The
system then chooses the model which displays the lowest mean absolute deviation (MAD).
Procedure 2 is more precise than procedure 1, but takes much longer. To use procedure 2, set
forecast strategy 56 in the time series forecast profile (univariate profile).
© SAP AG AP210 6-1 3

Univariate Forecasting Model: Example
Forecast results based on

constant model
Profile 1: assuming
Standard constant model
model
light bulbs
Forecast results based

on seasonal model
Profile 2: assuming
Christmas
seasonal model
model
lights
Christmas
? SAP AG 2001
??When setting up Demand Planning, you decide which forecasting models you are going to use for
each of your products or product families.
??The above example shows the different models a hardware wholesaler would use to forecast two
kinds of light bulb.
© SAP AG AP210 6-1 4

Exponential Smoothing Parameters
B(T) = B(t-1) + ? (V(t) - B(t-1))
Seasonal value (?)
Trend value (? )
Basic value (? )
History Future
? SAP AG 2001
??The system uses the alpha factor to smooth the basic value, the beta value to smooth the trend value,
and the gamma value to smooth the seasonal value.
??B(t) is the basic value for the current period t
??B(t-1) is the basic value from the previous period t-1
??V(t) is the actual requirement (version 000) from period t
??To determine the forecast value, all you need is the preceding forecast value, the last historical value,
and the "alpha" smoothing factor. This smoothing factor weights the more recent historical values
more than the less recent ones, so they have a greater influence on the forecast.
© SAP AG AP210 6-1 5

Exponential Smoothing
The smoothing principle:

? Weighting of the current value: ? ?? ???parameters
? Weighting of the previous value: (1 – parameters)
Weighting examples (in %):

Current 1. Historical 2. Historical 3. Historical
Parameter period period period period
0.1 10 9 8 7
0.3 30 21 15 10
0.5 50 25 13 6
0.7 70 21 6 2
? SAP AG 2001
??How quickly the forecast reacts to a change in pattern depends on the smoothing factor. If you
choose 0 for alpha, the new average equals the old one. In this case, the basic value calculated
previously remains; that is, the forecast does not react to current data. If you choose 1 for the alpha
value, the new average equals the last value in the time series.
??The most common values for Alpha are between 0.1, and 0.5.
??Example: An Alpha value of 0.5 weights historical values as follows:
??1st historical value: 50%, 2nd historical value: 25%
??3rd historical value: 12.5%, 4th historical value: 6.25%
??The default alpha factor is 0.3. The default beta factor is 0.3. The default gamma factor is 0.3
© SAP AG AP210 6-1 6

Automatic Outlier Correction
8
7
6
5
4
Tolerance range
3 = ep ± ? *1.25* MAD
2
ep = Expost Forecast
1
0
Today
? SAP AG 2001
??To correct outliers automatically in the historical data on which the forecast is based, select Outlier
correction in the univariate forecast profile. The system then calculates a tolerance lane for the
historical time series, based on the sigma factor. Historical data that lies outside the tolerance lane is
corrected so that it corresponds to the ex-post value for that point in time.
??The width of the tolerance lane for automatic outlier correction is defined by the sigma factor. This
defines how many standard deviations you want to allow. The smaller the sigma factor, the less the
tolerance and the greater the number of outliers which ar e detected and corrected. The standard
sigma factor is 1.25. If you set the sigma factor yourself, SAP recommends that you set it at between
0.6 and 2.
??After the outlier correction has been made, the Expost forecast is calculated for a second time with
the corrected values.
© SAP AG AP210 6-1 7

Workdays Correction
History
M1 M2 M3
Original act. 1900 2100 2300 Forecast
Days 19 21 23 M4 M5 M6
Corr. 2000 2000 2000 Uncorr. 2000 2000 2000
Days 22 20 18
Corr. 2200 2000 1800
Specify average number of workdays (such as 20) in

the forecast profile
? SAP AG 2001
??Use this function to account for the varying number of workdays in a month.
??The system bases the forecast on an average number of workdays per forecast period. You specify
these in the field Average no. of days in the univariate forecast profile.
??Inthe above example, the forecast period is "month" and we assume that the number of workdays in
each month is 20. The forecast is run as follows:
??1. The system corrects the historical data using the formula:
- Corrected history = (original history divided by actual workdays) multiplied by average
workdays
??2. The system calculates the forecast using the corrected historical data.
??3. The system adjusts this first "uncorrected" forecast result based on the formula:
- Corrected forecast = (uncorrected forecast divided by average workdays) multiplied by actual
workdays
??The number of workdays in the period is defined by the factory calendar in the planning area.
??The results of the planning data correction appear in the corrected forecast key figure
© SAP AG AP210 6-1 8

Univariate Forecast Errors
? MAD (Mean Absolute Deviation)

? ET (Error Total (Total Forecast Error))
? MAPE (Mean Absolute Percentage Error)
? MSE (Mean Square Error)
? RMSE (Root of the Mean Square Error)
? MPE (Mean Percentage Error)
? SAP AG 2001
??MAD (Mean Absolute Deviation), ET (Error Total), MAPE (Mean Absolute Percentage Error), MSE
(Mean Square Error), RMSE (Root of the Mean Square Error), MPE (Mean Percentage Error).
??If
you run the forecast in interactive planning (the user -defined or the forecast view), the univariate
measures of fit are displayed in the Forecast errors tab.
??Absolute errors prevent positive errors being canceled out by negative errors.
??See the Application Documentation for APO Demand Planning for more information on univariate
forecast error formulas.
© SAP AG AP210 6-1 9

Forecast Versions
? Comparing forecasts
Planning area
? Access via planning Key figure
table Planning version
Selection ID
Forecast errors
Version ID MAPE MSE... Parameter
Fcst ID Alpha Beta...
Changes
Fcst ID Planner Date...
? SAP AG 2001
??Forecast versions are used to save and compare the parameters from several forecast runs. Both
forecast errors, and the model used (including parameters, and users who have already forecasted
this selection) are saved.
??After you have executed several forecasts using different models and parameters, you can sort via
forecast errors to find out the best model, and best parameters.
© SAP AG AP210 6-2 0

Univariate Forecast Profile
Entries:
History entry
Version and key figure Planning version
use of corrected Key figure
history
Model parameters Forecast strategy

Periods per season
Strategy, length of season,
smoothing parameters Parameters: ? , ? ??????
Control parameters With or without zero consumption

Outlier
Outlier correction,
Average number of days
workdays correction
MAD, total of errors,

Forecast errors MAPE, RMSE,
MSE, MPE *
? SAP AG 2001
??In the forecast view of interactive planning, you can make changes to the univariate profile
configuration (the forecast model, planning horizons, forecast parameters and/or forecast settings).
To save the new forecast configurations in a profile with a unique name, choose Settings -> Forecast
profile -> and select Create unique forecast profiles when saving. A new forecast profile is created
for the current selection variant when you save the demand planning data. The next time you run the
forecast for the same selection variant, the system uses this profile by default. The advantage of
working with uniquely named profiles is that if you change the forecast configuration in some way
(for example, by switching from a seasonal to a seasonal trend model), the system retains the new
settings for you without overwriting the original forecast profile. If you do not set the indicator
Create unique forecast profiles when saving, the original forecast profile is overwritten with the new
settings when you save the interactive planning data. To see which forecast profiles were last used
for which selection variants, choose Goto -> Assignment in the master forecast profile. The name of
the GUID profile is generated automatically and you cannot change it.
??The Persmo (number of periods for seasonal moving average smoothing) field is used to smooth
seasonal regression. An entry of 0 means linear regression, 1 = seasonal regression with no
smoothing, and larger than 1 means smoothing by the number of periods entered.
??The promotion key figure is used to create historical value markings to correct the outlier, and adjust
the actuals using past promotions.
??You can define upper limits for the forecast errors in the diagnosis group. If the calculated forecast
errors exceed the threshold values, alerts are generated, and the planner can review this characteristic
combination again.
© SAP AG AP210 6-2 1

Multiple Linear Regression (MLR)
? MLR is used to correlate a dependent variable (sales, for

example), with independent (causal) variables (such as
prices, advertising, and seasonal factors).
? MLR uses historical data to calculate the “b” regression
coefficients for causal analysis.
? The demand planner has the difficult task of identifying
and quantifying the most important independent variables,
and of modeling the causal correlation.
? SAP AG 2001
© SAP AG AP210 6-2 2

Multiple Linear Regression
? Modeling options:
? Linear and nonlinear trends
? Seasonal patterns
? Dummy variables and time lags
? Model fit analysis

? R2
Forecast
? Adjusted R2
? Durbin-Watson
? Durbin-h
? t-test
? Mean elasticity
? SAP AG 2001
??Causal analysis is based on causal factors such as prices, budgets, and campaigns. The system uses
multiple linear regression (MLR) to calculate the influence causal factors had on the sales history,
and thus allows an analysis to be made of the success of specific actions. The connection between
causal factors and sales history that was calculated is then used as a basis for modeling future
actions.
??Multiple linear regression (MLR) is a form of causal analysis. It allows you to analyze the
relationship between a single dependent variable and several independent variables. You use the
independent variables, whose values are known to you, to predict the single dependent value (the
value you want to forecast). Each predictor variable (Xi) is weighted, the weights (bn) denoting their
relative contribution to the overall prediction.
??When you run the forecast in Demand Planning using an MLR model, the system calculates a
number of statistics that measure its accuracy (see above). If necessary, you can then adjust the
model. For information on these statistics, see the APO Glossary.
© SAP AG AP210 6-2 3

Causal Analysis: Advertising Budget
History Future
Unit Sales
Calculation
of ? Calculation
of sales
using ?
$ 2000
Actual Planned
$ 1000
$ 1500
$ 800
advertising budget:
budget:
Feb. Mar. April May June July Aug. Sept.
? SAP AG 2001
??In the above example, the key figure UNIT SALES is the dependent variable. The advertising budget
is one of the independent variables. The MLR model calculates the influence of the advertising
budget on the unit sales in the past. Using the calculated coefficient, the model incorporates the
effect of planned advertisement into the unit sales forecast.
??In multiple linear regression, coefficients - or weights - of the independent variables describe the
relative importance of the explanatory variables. Coefficients in a causal model indicate how changes
in each of the independent variables (X's) influence the value of the dependent variable (Y). For
example, we can find out the effect on quantity sold of decreasing the advertising budget by $1000
when all of the other variables remain constant.
??Elasticity measures the effect of a 1 percent change in an explanatory variable on the dependent
variable. This is calculated as the percentage change in Y divided by the percentage change in X.
Elasticities tend to differ when measured at different points on the regression line. The mean
elasticity is the mean average of the elasticities at these different points.
© SAP AG AP210 6-2 4

Causal Analysis
Constant Coefficients
Yi = ? o + ? 1 X1 + ? 2X2... + ? n?Xn
Sales Causal
history factor
? Unlimited causal factors (price, temperature, ...)

? Multiple Linear Regression (lags, dummy variables, ...)
? What-if analysis / marketing mix planning
? SAP AG 2001
??In the above formula:

??Y = dependent variable
??Beta0 = Y intercept or constant
??betan = coefficients or weights
??Xi = independent variables
??A practical example of MLR:
??Consumer demand for product Y = constant + price + advertising + merchandising +distribution +
free market price
??APO demand planning uses the ordinary least squares method to do MLR.
??Autocorrelation occurs when a regression model's error terms are not independent; or in other words,
when the values of historical periods in the forecast model influence the values of current periods.
Time series with a strong seasonal or cyclical pattern are often highly correlated.
??Autocorrelation is an indication that your independent variables are too closely related. If you detect
a level of autocorrelation that is no longer acceptable, it could mean that you need to improve your
MLR model. Durbin-h and Durbin-Watson are autocorrelation measures. For more information, see
the APO Glossary.
© SAP AG AP210 6-2 5

Causal Analysis: Frequently Asked Questions
? How can we sell X units? What is the most cost-effective

way?
? What will market reaction be if we (or our competitors)
increase/reduce the price by X %?
? How successful were the past promotional events?
? To what extent are sales effected by the weather (for
example, ice creams, and drinks)?
? What effect will cyclical changes have on our sales?
? What are the factors that determine long-term sales
improvement?
? SAP AG 2001
??Example for point 1: if you have modeled both product price, and advertising budget as causal
factors, you can use causal analysis to find out the most cost-effective way of achieving target sales.
Is it more effective to reduce the price, or increase the advertising budget?
© SAP AG AP210 6-2 6

Causal Analysis Requirements
? Data requirements
? Actuals for all variables
? Companies often want to compare with competitors but it is
difficult to obtain the necessary actuals
? Forecasts for independent variables
? Logical challenges
? Which variables influence sales? Experience in
? In what way do variables influence sales? statistics is
? Outlier, trend, and season modeling necessary if you
want to model
? Statistical problems causal
? Correlation, autocorrelation relationships!
? SAP AG 2001
© SAP AG AP210 6-2 7

MLR Profile
? Historical data (for example, sales history)

? Key figure, version
? Diagnosis group
? Threshold values for forecast errors
? Causal factors:
? Key figure from version (price, for example)
? Time series variables (marketing budget, temperature,
Easter weeks)
? Time lags
? SAP AG 2001
??You enter:
??A name and a brief description for the MLR profile.
??A key for the diagnosis group containing the MLR upper and lower error limits. If the MLR errors
exceed the threshold values, alerts are generated, and the planner can then review this
characteristic combination.
??The key figure on which the forecast is to be based. This is a key figure from the planning area
you specified in the master forecast profile. It does not have to be the key figure to which the
forecast results are written. The system uses this key figure's historical values to calculate the
coefficients in the MLR model. They are the historical values of Y in the MLR equation.
??The version of the historical data on which you want the forecast to be based.
??Key figures either from a planning area or from time series can be used as caus al factors.
??Transformation: You can set a lag here. For example, if you enter -1, the forecast value is shifted
one period into the future; that is, it takes one period for the variable to impact demand.
© SAP AG AP210 6-2 8

Measures of Fit: Causal Analysis
? Influence of an independent variable

? Coefficient, elasticity
? A measure of goodness-of-fit
? R2 (above 0.90 means a fairly good model)
? Adjusted R2 (if it is significantly lower than R2 you are probably
missing some explanatory variable)
? Correlating the dependent to an independent variable

? t-statistic (no correlation if t-test greater than +/- 1.4)
? Autocorrelation (past past periods are influencing current periods)

? Durbin-Watson (without lagged variables the acceptable range is
1.5 - 2.5)
? Durbin-h (with lagged variables acceptable below 1.96)
? SAP AG 2001
??For full definitions of the above measures of fit, see the APO Glossary.
??Ifyou run MLR in interactive planning, you can view the MLR measures of fit by using the Switch
parameters on or off toggle in the application toolbar (the causal view).
??Ifyou run MLR with mass processing, you can view the MLR measures of fit by defining alerts to
show when the measures exceed certain limits. These alerts can then be viewed in the Alert Monitor.
© SAP AG AP210 6-2 9

Composite Forecasting
? Weighted average of multiple forecasting methods

? Simple average
Univariate
1
Forecast
Univariate
Combine
Combine
... Result
&
MLR Reconcile
Reconcile MLR
n
? SAP AG 2001
??Composite forecasting combines forecasts from alternative forecasting techniques (i.e. time series,
causal, and/or judgmental) for a particular brand, product family or product each of which contains
the same sales history, but uses a different technique independently of the others. The underlying
objective is to take advantage of the strengths of each method to create a single forecast, either by
simply averaging the forecasts and giving each equal weight or by weighting each forecast and
summing them based on the residual error associated with each method.
??By combining the forecasts, the business analyst's objective is to develop the best forecast possible.
The composite forecasts of several mathematical and/or judgmental methods have been proven to
out-perform the individual forecasts of any of those methods used to generate the composite.
© SAP AG AP210 6-3 0

Composite Forecast Profile
? Forecast method selection Example:

? Percentage weighting factor
specification
? Definition of time-dependent Constant: 30%
weighting (optional) + Seasonal: 30%
+ MLR: 40%
= Final forecast
? SAP AG 2001
??You enter:
??A name for the composite forecast profile.
??A brief description of the composite forecast profile.
??The name of a univariate profile that you want to include in the composite forecast. You can
choose one using the Univ.Profile pushbutton at the bottom of the dialog box.
??The name of an MLR profile that you want to include in the composite forecast. You can choose
one using the MLR profile pushbutton at the bottom of the dialog box.
??A percentage to designate the weighting of this profile in the composite forecast. For example, if
you have three profiles, you might enter 30, 30 and 40 in this column. This weighting is not time-
dependent.
??The name of a weighting profile. A weighting profile assigns different weightings to different
periods. You can choose or create a weight ing profile using the Weighting profile pushbutton at
the bottom of the dialog box. This entry is optional.
© SAP AG AP210 6-3 1

Consensus-Based Forecasting
? Supports the S&OP process

? Has the ability to create multiple plans
? Product level for Marketing
? Sales areas and customer/distribution
channels for Sales
? Distribution centers and plants for S&OP
? Business units for Finance
Forecast
? Integrates plans into one Consensus Plan
that drives business
? Reconciles and combines on same level
and multi-levels
? SAP AG 2001
??A consensus-based sales and operations planning process is one in which you view forecasts from
various departments with different business goals- such as sales, marketing, logistics, and finance-
and integrate them into a one-number consensus forecast. This then drives the business.
??APO Demand Planning supports participants in consensus meetings (for example, Sales &
Operations Planning - S&OP) by providing information that enables them to compare forecasts for
the purpose of identifying, discussing and closing gaps that affect their business decisions. The goal
is to make changes that are agreed to by all parties. The result is a consensus based forecast.
© SAP AG AP210 6-3 2

Consensus-Based Planning: Example
User-defined view in planning book
Finance Budget 35 48 37 40%

Marketing 44 45 50 30%
Sales 40 30 30 30%
Macro
Actuals (previous year) 42 20 27
Cons.-basd. Forecast 40 32 41
? SAP AG 2001
??Above you see what a planning book for consensus -based forecasting could look like.
??Planning books are typically based on the user's data and tool needs for their role in the organization.
??One example of a commonly used planning book would be for consensus based forecasting. Such a
book would show the forecasts collected from multiple departments such as finance, sales and
marketing.
??In the above example, a pre-defined average is calculated using a macro and displayed in a row
defined as the consensus forecast.
??In this case, we would probably define the marketing, sales and finance rows of the book as
information only (no data entry) and the consensus row as a planning row to allow for adjustments.
© SAP AG AP210 6-3 3

Statistical Toolbox: Unit Summary

? Configure the forecast profile using relevant
control parameters and forecast errors
? Describe the differences between the various
forecasting methods and models for Univariate
Forecasting, Causal Analysis, and Composite
Forecasting
? Perform forecasts in the APO system
? SAP AG 2001
© SAP AG AP210 6-3 4

Exercises
Unit: Statistical Toolbox

Topic: Statistical Forecasting
Interactive forecasting is used mostly for the setting and checking of

parameters in the forecast profile. You can for example create different
forecast profiles for products A, B, and C with this tool. Assigning
profiles to characteristic value combinations and periodic forecasting is
usually carried out in mass processing.
1-1 Define the special functions for the forecast key figures. Assign the relevant key
figures (FORECAST, CORRHIST, and CORRFOR) to Forecast, Corrected history,
and Corrected forecast.
You can use these special functions to forecast based on the corrected history and can
use the workday adjustment to calculate the corrected forecast.
1-2 Create a forecast profile for your planning area.

Enter the following parameters:
Planning area PLAN##

Master profile Master
Name Profile for product P-102
Forecast key figure FORECAST
Period indicator M
Forecast horizon periods 12
History horizon periods 24
© SAP AG AP210 6-3 5

1-3 Create a univariate forecast profile for your planning area.
Show the recommendation and enter these parameters:
Profile UNI##
Name Statistical forecast for P -102
Planning version 000
Key figure INVQTY
Forecast strategy 11
Alpha, Beta, Gamma 0.3
Sigma 1
Persmo 1
Seas. periods 12
Forecast errors select all
Promotion key figure 9APROM1
1-4 Assign your UNI## univariate forecast profile to your master profile.
1-5 Go to Interactive planning, and create a selection for product P-102. Load the data for
product P-102 into the planning table and execute a univariate forecast.
Switch on graphic and analyze the historical data.
Execute multiple forecasts using different models and smoothing parameters. Each
time, check the forecast errors (especially the mean absolute deviation MAD), and the
forecast messages. Also perform a graphic analysis of the forecast results.
Switch on the outlier correction and check whether deviations between the original
history and corrected history have occurred. The correction depends on the forecast
model!
Compare the results from the past 10 forecast runs and save the parameters from the
run using the smallest MAD in the forecast profile.
Where can you automatically assign the selection to the profile?
Save your plan.
© SAP AG AP210 6-3 6

Solutions
Unit: Statistical Toolbox

Topic: Statistical Forecasting
Interactive forecasting is used mostly for the setting and checking of

parameters in the forecast profile. You can for example create different
forecast profiles for products A, B, and C with this tool. Assigning
profiles to characteristic value combinations and periodic forecasting is
usually carried out in mass processing.
1-1 Define the special functions for the forecast key figures. Assign the relevant key
figures (FORECAST, CORRHIST, and CORRFOR) to Forecast, Corrected history,
and Corrected forecast.
You can use these special functions to forecast based on the corrected history and can
use the workday adjustment to calculate the corrected forecast.
Select the planning area view
Right click on your Planning area (PLAN##): Forecast settings
Assign the FORECAST key figure to Forecast, the CORRHIST key figure to
Corrected history, and the CORRFOR key figure to Corrected forecast. Adopt.
1-2 Create a forecast profile for your planning area.

Enter the following parameters:

Master profile Master
Name Profile for product P-102
Forecast key figur e FORECAST
Period indicator M
Forecast horizon periods 12
History horizon periods 24
Demand Planning ? Environment ? Maintain Forecast Profiles

First create a master profile and enter the above parameters
© SAP AG AP210 6-3 7

1-3 Create a univariate forecast profile for your planning area.
Show the recommendation and enter these parameters:
Profile UNI##
Name Statistical forecast for P -102
Key figure INVQTY
Forecast strategy 11
Alpha, Beta, Gamma 0.3
Sigma 1
Persmo 1
Seas. periods 12
Forec ast errors select all
1-4 Assign your UNI## univariate forecast profile to your master profile.
Enter the above parameters in the Univariate profile tab. Save the single profile.
Go back to the Master profile tab and select your univariate forecast profile UNI##.
Save.
1-5 Go to Interactive planning, and create a selection for product P-102. Load the data for
product P-102 into the planning table and execute a univariate forecast.
Switch on graphic and analyze the historica l data.
Execute multiple forecasts using different models and smoothing parameters. Each
time, check the forecast errors (especially the mean absolute deviation MAD), and the
forecast messages. Also perform a graphic analysis of the forecast results.
Switch on the outlier correction and check whether deviations between the original
history and corrected history have occurred. The correction depends on the forecast
model!
Compare the results from the past 10 forecast runs and save the parameters from the
run using the smallest MAD in the forecast profile.
© SAP AG AP210 6-3 8

Where can you automatically assign the selection to the profile?
Save your plan.
If necessary double click on the DEMAND PLAN data view for your SALES##
planning book
Via the Selection window icon, create a selection for product P-102, and load the
selection into the planning table
Start the forecast by pressing the “STAT” (Univariate forecast) button
The forecast is then run automatically
In the upper part of the screen you will see the STAT icon for executing the
forecast, the forecast comparison icon, and the show/hide table icon that switches
the graphic on or off.
In the lower section of the screen you can change the forecast parameters.
You can automatically assign the selection to the profile by going to Settings ?
Forecast profile and by selecting: “Save assignment of selection for forecast
profile”. By saving in the forecast view, the planning data, the profile, and the
assignment are all saved.
© SAP AG AP210 6-3 9

Promotions and Lifecycle Planning
Contents:
? Lifecycle Management
? "Like" Modeling
? SAP AG 2001
© SAP AG AP210 7-1

Unit Objectives
? Create and assign promotions

? Explain how promotions are extracted from
historical data
? Describe how product lifecycles can be modeled
in APO Demand Planning
? SAP AG 2001
© SAP AG AP210 7-2

11 Course Overview
2 InfoCubes
33 Configuration
66 Forecasting
7
Promotions &
77
Lifecycle Planning
88 Mass Processing
99 Conclusion
? SAP AG 2001
© SAP AG AP210 7-3

Business Scenario
? The marketing department at the Precision Pump

Company plans to utilize promotion planning to
better assess the effects of planned promotions
on the demand plan.
? Additionally, the marketing department will use
APO's Lifecycle Planning to plan introductions of
new products and discontinuations of old
products.
? SAP AG 2001
© SAP AG AP210 7-4

Promotion Planning
Forecast simulation
Sales Total sales:
Promotion Promotion patterns

’95 ’96
-10% ’97 ’98

Price Planner
Planner
Quantity
? SAP AG 2001
??In APO Demand Planning, you can plan promotions or other special events separately from the rest
of your forecast. You can use Promotion Planning to record either one-time events, such as an
earthquake, or repeated events such as quarterly advertising campaigns. Other examples of
promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence.
Examples of events that also have an impact on consumer behavior are upward/downward economic
trends, and acts of nature, such as tornadoes etc.
??The advantages of planning promotions separately are:
??You can compare forecasts with promotions to those without promotions.
??You can correct the sales history by extracting past promotions from it, thus obtaining unpromoted
historical data for the baseline forecast.
??The processes of interactive planning and promotion planning can be kept completely separate.
For example, the sales force might be responsible for interactive planning while marketing is
responsible for promotion planning.
© SAP AG AP210 7-5

Promotions
Start of promotion
Demand Plan
100 % Forecast
M M M M M Time
07/01 08/01 09/01 10/01 11/01
Period M1 M2 M3 M4 M5 Unit
Corrected forecast 100 100 100 100 100 KG
Promotion Percentage +10% +20% +10% -5% %
Promotion key figure 10 20 10 -5 KG Macro
Demand Plan 110 120 110 95 100 KG
? SAP AG 2001
??Promotional uplifts can be defined in units or percentages by promotion patterns. A promotion

pattern that occurred in the past can be automatically detected and recreated for future periods. A
promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion
of the same type is repeated.
??The above example shows how a promotion that has been defined as a percentage affects the
forecast.
© SAP AG AP210 7-6

Definition of a Promotion
Settings: Promotion 1 Object assignment
Forecast
key figure
Percentage / Product
Product 11
unit based ..
Corrected history ..
Time series Product
Product 55
Promotion key figure
characteristic level Planning
versions
Start Dates &

Product 5
Periods .
1999 .
Product 20
? SAP AG 2001
??The definition of a promotion comprises:

??Start date
??Number of promotions
??Planning version
??Key figure (forecast) that the promotion refers to
??In order to see a promotion in interactive planning, you must activate it.
??In interactive planning, you can see which promotions make up the promotion key figure: right click
on the key figure required, and choose "Promotion list". A window now appears showing this
information. Remember that the promotions you see here depend on the products in the selection
variant.
??From SP 10 you can start promotion evaluations
via transaction /n/sapapo/mp39 (Report
/SAPAPO/PROMOTION_REPORTING) (note 384550).
© SAP AG AP210 7-7

Assigning Characteristic Values to the Promotion
Object selection Characteristic values,

that can be selected
Show: APO Products
that meet the following conditions:

APO version 000
Sold-to party Baker Criteria, by which the
characteristic values
should be selected
Sold-to party
Product
Products Promotions
The last drilldown
level must correspond P-101 Action 1
to the characteristic level P-101 Assign Action 2
of the promotion level objects
? SAP AG 2001
??Once you have created a promotion and entered the planned absolute or percentage changes, you
define the characteristic combinations for which the promotion is to be planned. You select the
characteristic combinations in the selection window, and assign them to the promotion.
??You must decide the characteristic level at which assignment should be made. If you choose the
"Product" characteristic, then product level must be the last drilldown level for assignment. For
example, at the first level you can assign sales organizations to the promotion, then sold-to parties,
and finally the relevant products.
© SAP AG AP210 7-8

Status and Promotion Types
Promotion created:
Status "In process"
Status “offered to
customer”
Collaborative
promotion planning
Status “Confirmed by
customer"
Status "Planned, Stored in liveCache

for future"
? Promotion attribute types for classifying and selecting

promotions
? For example, "store reduction", and "media support"
? SAP AG 2001
??Forpromotion planning without customer participation, after you have processed the promotion you
must set status to "planned for future" to activate the promotion.
??For internet based collaborative promotion planning, first set status to "Offered to customer". The
customer can accept (status: confirmed by customer) or decline (status: rejected by customer) the
promotion in the internet. The next step is to activate the promotions confirmed by the customer.
Maintaining a partner at the customer location is a prerequisite of collaborative promotion planning.
You can create a collaboration partner via Supply Chain Collaboration > Environment > Current
Settings > Make Settings for Collaborative Planning.
??The Status field in the promotion planning screen's Promotion tab displays the status of a promotion.
If you want to change a status, choose the icon in the promotion planning application toolbar situated
at the top right of the screen.
??Your company can have a maximum of 10 promotion attribute types. You could, for example,
have the promotion attribute types "store reduction", and "media support". ?
??There can be many user -defined attributes for each promotion attribute type. For example, the
promotion attribute type "media support" could have the attributes "TV", "Radio", and "Web".
© SAP AG AP210 7-9

Cannibalization
? You use cannibalization groups to model the effect

promotions will have on similar products.
Sales of product
with special offer
Corrected forecast
100 % Original Forecast
Sales of Time
M M M M M
similar product
07/99 08/99 09/99 10/99 11/99
100 % Original Forecast
M M M M M Time
07/99 08/99 09/99 10/99 11/99
? SAP AG 2001
??A single promotion has both a positive and negative influence on sales of products from one
cannibalization group.
??To use cannibalization groups, select the option, Check cannibalization group, from the Promotion
tab in the Promotion Planning screen. When you create a promotion for one of the products from the
group, the other promotions are created automatically.
??Example: You plan a 5% price reduction on liter bottles of "Peach blossom" shampoo, which will
cause a 30% increase in sales whereas sales of 250ml bottles will go down by 3%, and sales of
500ml bottles by 5%.
??You define the cannibalization group as follows:
- Liter bottle +30
- 250ml bottle -3
- 500 bottle -5
??You create a promotion for the liter bottle. Negative promotions are created automatically for the
250 ml, and 500 ml bottle in the percentage ratio that is predefined in the cannibalization group
factors.
© SAP AG AP210 7-1 0

Impact of Promotions on History and Forecast
Corrected forecast
+ Promotion
History
(Including a Promotion)
Corrected history Forecast
History Future
? SAP AG 2001
??The use of promotional calendars allows you to separate skewing effects of promotional activities.
??Futurepromotions are displayed in interactive planning in the promotions key fig ure. You can use a
macro to make sure that promotions are included in the demand plan key figure.
??You can forecast future demand using the corrected history (minus promotions). To remove past
promotions from the corrected history key figure, specify the past promotions key figure in the
forecast profile, and select "change values".
??You can also define a post promotion key figure, and get the system to calculate the actual effect the
promotions had on sales (how sales changed). Therefore, if you want to correct the history using the
planned promotion, you do not need a post promotion key figure.
??Several techniques, such as multiple linear regression with or without a trend or seasonality, are
available for measuring the impact of a historical promotion, and therefore for estimating the impact
of a similar promotion in the future.
© SAP AG AP210 7-1 1

Actuals Adjustment
Original actuals
1. Phase In/Out profile

2. Workday adjustment
3. Past promotions
4. Outlier correction
5. Manual adjustments
Corrected history
? SAP AG 2001
??In order to generate more exact forecasts, the impact of one-time promotions, or delivery problems
must be removed from the actuals. These adjustments are not usually executed in the original key
figure, but in the adjusted history key figure.
??Various automatic procedures that you activate in the forecast profile, can be used to adjust the
actuals.
??The procedures are executed in the above sequence.
??The lifecycle planning phase in/out profiles control the phase ins of new products, and the phase
outs of old products
??Workday adjustment ensures that higher values are forecasted for periods that have many
workdays. Historical data must be adjusted to take this into account
??With promotion planning you can extract past actions (special offers etc.) from the actuals so that
they are not included in the forecast
??You can use outlier correction to automatically correct actuals that are outside of the tolerance
range.
??You can also adjust the actuals manually
??A key figure to be forecasted can also be assigned the following elements:
??A key figure for storing corrected history
??A key figure for storing the corrected forecast
??A key figure for storing ex-post forecasts
??A key figure for storing ex-post forecasts for the MLR
© SAP AG AP210 7-1 2

Lifecycle Management & Like Modeling
Actuals of the old product
Forecasting of the new product

Sales
Like
Lifecycle
Time
? SAP AG 2001
??A product's lifecycle consists of different phases: launch, growth, maturity, and discontinuation. In
APO Demand Planning, you can represent the launch, growth and discontinuation phases by using
phase-in and phase-out profiles.
??You use lifecycle planning and "Like" modeling to forecast the phase-ins of new products and phase-
outs of old products.
??In the phase-in profile you enter ever-increasing percentages during a specified period or periods to
forecast the new product, thus mimicking the upward sales curve that you expect the product to
display during its launch and growth phases. If past corrections fall, the corrected history key figure
can be adjusted automatically.
??A phase-out profile reduces the sales forecast for a product by ever-decreasing percentages during a
specified period, thus mimicking the downward sales curve that you expect the product to display
during its discontinuation phase. If the corrections in the past fall, the corrected history key figure
can be reduced automatically.
??For all characteristic value combinations, you can use a phase-in profile, or a phase-out profile, a
"like" profile, or any combination of these profiles.
© SAP AG AP210 7-1 3

"Like" Modeling
? To forecast a new product using historical data from old

products, you create a Like Profile
Replacement Launching of a New Product
Old
Product
New
Product ? New
Product
x , å, å? ixi
Assigning the Like profile to

characteristic values (maintain in
the forecast profile)
? SAP AG 2001
??Some products do not have enough historical data to provide the basis for a forecast. With a "like"
profile, you can create a forecast using the historical data of a product or products with similar sales
behavior. Use "like" profiles for new products and products with short lifecycles.
© SAP AG AP210 7-1 4

Lifecycle Management
? To model the lifecycle of old and new products, you define

phase in and phase out profiles
Corrected
Forecast
History
Old New
Product Product
Phase Out Phase In Phase Out 100%
Assigning Phase In/out profiles to 0%

characteristic values (maintain in Phase Out
the forecast profile)
? SAP AG 2001
??Ifthe phase-out profile period is within the history horizon specified in the master forecast profile,
the system adjusts the corrected history. If no key figure has been assigned to the corrected history in
the planning area, the corrected values are displayed in the statistical forecast view but that particular
row is not saved.
??Ifthe phase-in profile period is within the future horizon specified in the master forecast profile, the
system directly adjusts the forecast key figure.
??You must select the Material forecast indicator in the master forecast profile.
© SAP AG AP210 7-1 5

Promotions and Lifecycle Planning: Unit Summary

? Create and assign promotions
? Explain how promotions are extracted from
historical data
? Describe how product lifecycles can be modeled
in APO Demand Planning
? SAP AG 2001
© SAP AG AP210 7-1 6

Exercises
Unit: Promotions and Lifecycle Planning

Topic: Promotion Planning
1-1 Define the last object assignment planning level to your promotions.
In this example the last level for your planning area PLAN## and key figure
9APROM1 should be product level
1-2 In Interactive Planning create and save a percentage promotion with the following
parameters.
Name Promo##
Description Promotion, group ##
Type %
Number of promotions 3
Start of promotion The beginning of the next month
Plan. key figure CORRFOR
1-3 Enter the percentage changes: the promotion should increase sales by 10% in the first
month, 20% in the second month, and 10% again in the third.
Assign product P-102 to the promotion, activate the promotion, and save it.
1-4 Go back to Interactive Planning, and see if the promotion data is displayed, and if
your default macro sums this data in the demand plan.
© SAP AG AP210 7-1 7

© SAP AG AP210 7-1 8
Topic: Like Modeling
“Like modeling” can be used to forecast new products with historical data
from old products. You can also use it to define the life cycle of the old
and new product.
This exercise has the following structure:
1. The product master of the new product has already been transferred
to the R/3 system and is the same as it is in APO
2. You create new characteristic combinations for the product.
3. You specify the product whose historical data is to be read, and you
also choose the life cycle
4. You execute the forecast, but you do not save it because the final
forecast is to be planned in Mass Processing.
2-1 Create a new characteristic value combination for the new product NEW for your
planning object structure POS##. Enter the following characteristic values, and create
time series objects for them:
Location 2400
Product NEW
Sold-to party 1000
Division 01
Product hierarchy 0110
Sales organization 2400
2-2 Assign characteristic 9AMATNR to the basic lifecycle for your planning area
PLAN##.
Define the product whose historical data is to be read. Create a Like profile LIKE##
and store 100% of the data from product P-102.
2-3 Create a Phase-in profile called PHASEIN##. The product introduction (phase in)
should start one month from now with a duration of four months. There should be a
20% increase per month. Nothing should be forecasted before the product launch.
© SAP AG AP210 7-1 9

2-4 Create a Phase-out profile called PHASOUT##. The phase out of the product should
start six months from now and end nine months from now. There should be reduction
of 20% per month. After the product discontinuation, nothing should be forecasted.
2-5 Assign your LIKE##, PHASEIN## and PHASEOUT## profiles to the NEW product.
Enter a new master forecast profile called LIKE with the indicator “material forecast”,
by overwriting the old MASTER profile.
2-6 For the new product NEW, create a selection NEW (you will also need this selection
later for mass processing). Run a forecast in interactive planning, and check the
results. Do not save. It should be generated in Mass processing
© SAP AG AP210 7-2 0

Solutions

Topic: Promotion Planning
1-1 Define the last object assignment planning level to your promotions.
In this example the last level for your planning area PLAN## and key figure
9APROM1 should be product level
Demand Planning ? Planning ? Promotion ? Maintain Promotion Key Figures
For the planning area specify your PLAN##, th e key figure 9APROM1, and as
characteristic for promotion level 9AMATNR.
1-2 In Interactive Planning create and save a percentage promotion with the following
parameters.
Name Promo##
Description Promotion, group ##
Type %
Number of promotions 3
Start of promotion The beginning of the next month
Plan. key figure CORRFOR

Press the “PROMO” button
Press the “Create promotion” button
Enter the parameters and save.
© SAP AG AP210 7-2 1

1-3 Enter the percentage changes: the promotion should increase sales by 10% in the first
month, 20% in the second month, and 10% again in the third.
Assign product P-102 to the promotion, activate the promotion, and save it.
After saving the promotion you go to a table where you can enter percentage
changes.
10 20 10
Choose product P-102 from the selection window and double click on it. To assign
the product to the promotion, press the “Assign objects” button. The objects, and
calculation of the promotion’s effect now appear in the planning table.
To make the promotion effective for future requirements, change promotion status
to “Planned, in the future”, using the “Change status” button.
Save the promotion.
1-4 Go back to Interactive Planning, and see if the promotion data is displayed, and if
your default macro sums this data in the demand plan.
Press the “Interactive Planning” button

The percentage changes are displayed in the promotion key figure.
Your default macro calculates the demand plan from the following sum: Corrected
forecast + Correction + Promotion.
© SAP AG AP210 7-2 2

Topic: Like Modeling
“Like modeling” can be used to forecast new products with historical data
from old products. You can also use it to define the life cycle of the old
and new product.
This exercise has the following structure:
1. The product master of the new product has already been transferred
to the R/3 system and is the same as it is in APO
2. You create new characteristic combinations for the product.
3. You specify the product whose historical data is to be read, and you
also choose the life cycle
4. You execute the forecast, but you do not save it because the final
forecast is to be planned in Mass Processing.
2-1 Create a new characteristic value combination for the new product NEW for your
planning object structure POS##. Enter the following characteristic values, and create
time series objects for them:
Location 2400
Product NEW
Sold-to party 1000
Division 01
Product hierarchy 0110
Sales organization 2400

Choose Planning object structure
Right click on your planning object structure POS##: Maintain char. combinations
Choose <Create characteristic combination...>.
Enter characteristic values, and select Create time series objects.
Choose Display characteristics combinations to check the new entry.
© SAP AG AP210 7-2 3

2-2 Assign characteristic 9AMATNR to the basic lifecycle for your planning area
PLAN##.
Define the product whose historical data is to be read. Create a Like profile LIKE##
and store 100% of the data from product P-102.
Demand Planning ? Environment ? Maintain Forecast Profiles
Enter your planning area PLAN##, and the MASTER master forecast profile.
Click on the “Basic life cycle” button, and use characteristic 9AMATNR.
Go to ? LIKE profiles ? Define

Enter the following data and save:
“Like” profile LIKE##

Description Like P-102
Ref. products P -102
Action S
Weighting factor (%) 100
Stay in the forecast profile until exercise 2 -5
2-3 Create a Phase-in profile called PHASEIN##. The product introduction (phase in)
should start one month from now with a duration of four months. There should be a
20% increase per month. Nothing should be forecasted before the product launch.
Go to ? Phase-in/out profiles ? Define
Phase-in profiles ID PHASEIN##

Description Introduction
Start date One month from now
End date Five months from now
Period M
Constant factor to be applied Select,
before start date Factor 0
© SAP AG AP210 7-2 4

Press “Proposal”, to automatically insert the number of periods
Press “Edit time series”, to enter the percentage values
20 40 60 80
Adopt.
2-4 Create a Phase-out profile called PHASOUT##. The phase out of the product should
start six months from now and end nine months from now. There should be reduction
of 25% per month. After the product discontinuation, nothing should be forecasted.
Go to ? Phase-in/out profiles ? Define
Phase-out profile PHASEOUT# #

Description Product phase out
Start date Six months from now
End date Nine months from now

Period M
Constant factor to be applied after Select,
end date
Factor 0
Press “Proposal”, to automatically insert the number of periods

Press “Edit time series”, to enter the percentage values
80 60 40 20
Adopt.
© SAP AG AP210 7-2 5

2-5 Assign your LIKE##, PHASEIN## and PHASEOUT## profiles to the NEW product.
Enter a new master forecast profile called LIKE with the indicator “material forecast”,
by overwriting the old MASTER profile.
Use the “Assign life cycle” button to assign your LIKE##, PHASEIN##, and
PHASEOUT## profiles to the master profile for your new product NEW.
Overwrite your old master forecast profile MASTER with LIKE.
For description, choose “Material forecast”
Save, and exit the forecast profile maintenance.
2-6 For the new product NEW, create a selection NEW (you will also need this selection
later for mass processing). Run a forecast in interactive planning, and check the
results. Do not save. It should be ge nerated in Mass processing
Open the selection window and choose APO - product in “Show”. Version 000 is
the default version.
Choose product again in the next row and enter NEW in the right-hand side.
Press the “Save selection” icon, and write NEW for Selection description. Save.
Double click on the NEW product in the selection window.
Start the forecast by pressing the “STAT” (Univariate forecast) button
Select your LIKE master profile
The forecast is then run automatically. Switch on graphic and check the product
phase-in, and discontinuation phase.
DO NOT SAVE!
© SAP AG AP210 7-2 6

Mass Processing
Contents:
? Macro calculation in the background

? Forecast in the background
? Release of Demand Planning data to the liveCache
? Transfer of Demand Planning data to the R/3
? SAP AG 2001
© SAP AG AP210 8-1

Unit Objectives
? Configure and execute mass processing of

macros, forecasts and demand plan releases.
? Describe how sales quantities are released to
production planning, and explain how data is
distributed to locations.
? SAP AG 2001
© SAP AG AP210 8-2

11 Course Overview
22 InfoCubes
33 Configuration
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing 8
99 Conclusion
? SAP AG 2001
© SAP AG AP210 8-3

Business Scenario
? Once the forecast profiles have been set

interactively for the different products, the
periodic background forecast is then set up.
? Mass processing offers the forecast data at the
start of the planning cycle. The planners can then
analyze and correct the data.
? At the end of the planning cycle, the data is then
released to Production Planning automatically.
? SAP AG 2001
© SAP AG AP210 8-4

Mass Processing Functions
Macro execution
Forecasting
40% 40% 20% Release to APO

Production Planning
Creating planned
independent
requirements 40% 40% 20% Transfer to R/3
Demand Management
R/3 plants
? SAP AG 2001
??The most convenient way to carry out planning activities involving large volumes of data is in the
background. For this purpose, SAP provides a mass processing function.
??The mass processing actions you can carry out in APO Demand Planning are listed above.
© SAP AG AP210 8-5

Steps in Mass Processing (1)
Create Profile Define Activity Create Job Schedule Job
Planning
book Activity
11
12
Planning Version 10
1
2
view 9 3
8 4
Selection
Action 7 6 5
variant(s)
Profile Aggregation
level
? SAP AG 2001
??Theabove sequence depicts the steps you perform to carry out mass processing. The action is either
macro execution, forecasting or release to SNP.
??You can carry out several planning actions within one job as long as th ey have the same activity. For
example, you might run a mass processing job that executes several macros at the same time, or a job
that carries out a statistical forecast and then releases the results to PP.
??The sequence in which actions within one activity are processed depends on the sequential numbers
you define for them in the activity.
??The system performs all actions for the first characteristic value before processing the second
characteristic value. Consequently, if you want the system to perform one action for all characteristic
values before it starts the next action, you must define separate planning activities.
??For each job you can define the selection of data which should be considered in the processing of the
job as well as the level to which it should be aggregated before the actions are executed.
??Planning jobs are reusable.
© SAP AG AP210 8-6

Steps in Mass Processing (2)
Macro Forecasting
Forecasting
Transfer
Release
40% 40% 20%
Macro
Release / transfer
Profile
Activity
Create job and schedule
? SAP AG 2001
??To create activities go to Demand Planning->Environment->Current Settings->Configure mass

processing activities.
??The prerequisite for creating a planning activity is the existence of either a macro, forecast profile,
release profile, or transfer profile.
??Tocreate jobs, go to, Demand Planning->Planning->Demand Planning in the background->Create
Demand Planning in the background.
© SAP AG AP210 8-7

Releasing the Demand Plan
Time series Order

objects objects
liveCache liveCache
Key figure Category (FA)
? Creating planned independent requirements with a time

buckets profile
? Workdays are taken from the location shipping calendar
? Location Split
? Product split
? Daily buckets profile when DP storage buckets profile does
not contain any days
? SAP AG 2001
??If the forecast has been completed in demand planning, release the forecasted quantities to the
liveCache as a planned independent requirement.
??To do this follow the path Demand Planning->Environment->Release to SNP
??The "add data" flag means that the released amounts will be added to planne d individual
requirements that may already exist. It is a good idea to use this setting if you want to release from
multiple planning areas.
disaggregated to the locations automatically. If you want to use the allocation in the location split
table for products, you do not have to specify the location characteristic (for example 9ALOCNO).
??You can, for instance, control distribution of a product group to members via product split. If product
split has been maintained for a product, it will always be included.
© SAP AG AP210 8-8

Release Profile
? Specify planning area Time series

objects
? Define key figure liveCache
? Specify version
Key figure
? Enter daily buckets profile
(optional)
Daily buckets profile
? Enter category (optional)
Order
objects
liveCache
Category (FA)
? SAP AG 2001
??The key figure you release must be a quantity key figure.

??InCustomizing, you can define different categories for planned independent requirements (FA, FB,
FC…) and use them to represent demand prioritization
??The system creates the orders in the
liveCache according to their category. The category is
determined during the release to SNP as follows:
??1. Has a category been entered in the release profile? If yes, this category is used.
??2. If no, has a category been set in the definition of the requirements strategy in Customizing?
(You define the product's strategy in the Proposed strategy field of the Demand tab of the product
master record.) If yes, this category is used.
??3. If no, the category FA (forecasts) is used.
© SAP AG AP210 8-9

Transfer Profile
? Specify planning area Time series

objects
? Define key figure liveCache
? Specify version
Key figure
? R/3 requirements type
? R/3 Demand Management
version
? Should version be active?
R/3
Planned
independent
requirements
? SAP AG 2001
??The key figure you release must be a quantity key figure.

??If
you do not enter an R/3 requirements type, it will be taken from the main strategy in the R/3
material master.
© SAP AG AP210 8-1 0

Executing a Job
Job Queue Job Overview
Job
finished
Job
Job Forecasting
Schedule Forecasting
?
Revise
Job Spool List
11
12
1
10 2 Job 1
9 3
8 4 Product 1 Forecast
7 6 5 Product 2 Forecast
..
..
Product 100 Forecast
? SAP AG 2001
??Tocreate jobs, go to, Demand Planning->Planning->Demand Planning in the background->Create

Demand Planning in the background
??To find the job overview go to, Demand Planning->Planning->Demand Planning in the background-
>Demand Planning Job overview in the background
The job overview lists your jobs and their system status. For a detailed results list, see the spool list.
Job items with errors are indicated by a red traffic light.
??During revision, to receive a list of the characteristic combinations with status, go to: Demand
Planning->Planning->Demand Planning in the background->Check Demand Planning in the
background.
© SAP AG AP210 8-1 1

Mass Processing: Unit Summary

? Configure and execute mass processing of
macros, forecasts and demand plan releases.
? Describe how sales quantities are released to
production planning, and explain how data is
distributed to locations.
? SAP AG 2001
© SAP AG AP210 8-1 2

Exercises
Unit: Mass Processing

Topic: Forecasting and Release to Production Planning
The aim of this exercise is to set up mass processing so that:

1. your new product forecast, and
2. the macro for calculating the demand plan, and
3. release to production planning
can all be executed in the background.
1-1 Create a profile REL## for release to production planning using the following data.
Make sure that your requirements do not overwrite the requirements of other groups
(select the box marked “Create new orders”).

Key figure FINFOR
Category FA
Product characteristic 9AMATNR
Location characteristic 9ALOCNO
1-2 Create a planning activity called ACT## for your SALES## planning book, and your
DEMAND PLAN data view. Enter your LIKE master forecast profile, the DEMAND
PLAN CALCULATION macro, and your release profile REL##, and increase the
action counter after each entry.
1-3 Create a job called JOB## for mass processing using your SALES## planning book,
and your DEMAND PLAN data view, and planning version 000.
Enter your activity ACT##, and the selection NEW for the new product.
Set the aggregation level to product/location.
1-4 Schedule the job, and review the results. Make sure that the forecast has been
generated, that the macro has copied the forecast into the demand plan, and that
planned independent requirements have been generated.
© SAP AG AP210 8-1 3

© SAP AG AP210 8-1 4
Solutions
Unit: Mass Processing

Topic: Forecasting and Release to Production Planning
The aim of this exercise is to set up mass processing so that:

1. your new product forecast, and
2. the macro for calculating the demand plan, and
3. release to production planning
can all be executed in the background.
1-1 Create a profile REL## for release to production planning using the following data.
Make sure that your requirements do not overwrite the requirements of other groups.

Key figure FINFOR
Category FA
Product characteristic 9AMATNR
Location characteristic 9ALOCNO
Demand Planning ? Environment ? Current Settings ? Maintain Release

Profiles
Create a release profile called REL##.
Enter the above data.
Select the “Create new orders” box.
© SAP AG AP210 8-1 5

1-2 Create a planning activity called ACT## for your SALES## planning book, and your
DEMAND PLAN data view. Enter your LIKE master forecast profile, the DEMAND
PLAN CALCULATION macro, and your release profile REL##, and increase the
action counter after each entry.
Demand Planning ? Environment ? Current Settings ? Define Activities for
Mass Processing
Create a planning activity called ACT## with the text description “Forecast and
release”.
Then enter your Master forecast profile LIKE, and increase the action counter. Go
to the Macro tab.
Then enter the DEMAND PLAN CALCULATION macro, and increase the action
counter. Go to the Release profile tab.
Finally enter your release profile REL##, and increase the action counter.
Save the activity.
1-3 Create a job called JOB## for mass processing using your SALES## planning book,
and your DEMAND PLAN data view, and planning version 000.
Enter your activity ACT##, and the selection NEW for the new product.
Set the aggregation level to product/location.
Demand Planning ? Planning ? Demand Planning in the Background ? Create

Demand Planning in the Background..
Specify JOB## as the batch number, and for Jobname JOB Group ##.
Enter your planning book SALES##, your data view DEMAND PLAN, and Version
000. Execute.
Enter activity ACT##, and selection NEW for the new product.
In Aggregation level, only select Location and Product.
Save your job.
© SAP AG AP210 8-1 6

1-4 Schedule the job, and review the results. Make sure that the forecast has been
generated, that the macro has copied the forecast into the demand plan, and that
planned independent requirements have been generated.
Demand Planning ? Planning ? Demand Planning in the Background ?

Schedule Demand Planning in the Background..
Enter JOB##, execute, press “Immediately”, and save.
Is the job complete?
Demand Planning ? Planning ? Demand Planning in the Background ? Job

Overview of Demand Planning in the Background. Execute
Check to see if the forecast and the macro have been carried out.
Open the selection window and get the NEW selection.
Double click on the NEW product in the selection window.
Planning data can now be seen in the forecast and demand plan key figures.
Check to see if planned independent requirements have been generated.
Production Planning ? Interactive Production Planning ? Product View
Specify Version 000, product NEW, and loca tion 2400, and confirm twice: you will
now see the planned independent requirements of all the groups that have been
released to date.
© SAP AG AP210 8-1 7

Conclusion
? Architecture & Integration

? InfoCubes
? Demand Planning Configuration
? Interactive Planning
?
? Forecasting Techniques
? Releasing the Demand Plan
? SAP AG 2001
© SAP AG AP210 9-1

1 Course Overview
22 InfoCubes
33 Configuration
66 Forecasting
7 Promotions &
Lifecycle Planning
88 Mass Processing
99 Conclusion 9
? SAP AG 2001
© SAP AG AP210 9-2

Course Objectives
At the conclusion of this course, you will be able to

? Configure Demand Planning in APO
? Create planning books and macros
? Create demand plans using univariate
forecasting, causal analysis, and composite
forecasting
? Utilize marketing and sales tools such as
promotion planning, lifecycle management, and
"like" modeling
? Release demand plans to the liveCache of APO
(Supply Network Planning and Production
Planning / Detailed Scheduling).
? SAP AG 2001
© SAP AG AP210 9-3

APO Application Architecture
OLTP
OLTP (R/3)
(R/3) APO Information
Supply Chain Cockpit Warehouse
Warehouse
LIS, CO-PA (SAP BW)
HR, FI Demand Planning Historical
Planned Indep. data
Requirements
Customer
orders PP / DS
Supply Key
Global
Production Network Performance
ATP
Scheduling Planning Key figures
Inventory (KPIs)
Deployment
management
Transportation Transportation Planning

processing
? SAP AG 2001
??Aggregated actual data can be transferred to APO from OLTP, BW (Business Information
Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for
forecasting. The demand plan is created as a result of the forecast.
??You release the demand plan to Production Planning, which creates planned independent
requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand
plan to the operating system (OLTP) as planned independent requirements.
??Theseamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient
S&OP process.
© SAP AG AP210 9-4

Defining a Planning Area
Collaboration Interactive Planning
Planning book I Planning book II
Planning Areas
Time series Orders
liveCache
liveCache liveCache
liveCache
Actuals Business Core

Extraction Explorer Interface
? SAP AG 2001
??A planning area is the central data structure of Demand Planning and Supply Network Planning. It
groups together the parameters that define the scope of planning activities. It also determines where
and how the planning results are saved.
© SAP AG AP210 9-5

Planning & Reporting
? Consistent planning (top down,

middle out, Aug. Sept.
W32 W33 W34 W35 W36 W37 W38 W39 W40 W41
time sequence
bottom up)
d
rio
Pe
? Slice & dice 203
Customer
124
? Drill downs & ups Regions

Material
? Multiple demand plans

to be simulated Product Groups
? Standard forecast accuracy

analysis
? SAP AG 2001
??Planning supports online simulation in multiple planning scenarios, consistent planning throughout
your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and
disaggregation, and slice-and-dice techniques.
??Consistent planning means that planning data on all planning levels can be consistently held
(automatic aggregation and disaggregation).
© SAP AG AP210 9-6

Statistical Toolbox
? Moving average
? Models (constant, seasonal
trend)
? Exponential Smoothing
? Holt-Winters
? Croston's method (for sporadic
demand)
? Causal Analysis
? Weighted average of multiple
models
? SAP AG 2001
and with different demand types.
??APO Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to
choose the best method for a specific demand type.
??Compositeforecasting extends the idea of pick-the-best; with this technique you combine two or
more methods.
??Croston's method allows you to model "lumpy" (sporadic) demand.
??The statistical forecasting toolbox provides all the features you require to efficiently create accurate
forecasts, including everything from data analysis via time series models through multiple linear
regression.
© SAP AG AP210 9-7

Promotion Planning
Forecast simulation
Sales Total sales:
Promotion Promotion patterns

’95 ’96
-10% ’97 ’98

Price Planner
Planner
Quantity
? SAP AG 2001
??Promotions can have a major impact on consumer behavior.

??In APO Demand Planning, you can plan promotions or other special events independently of the rest
of your forecast.
??Use Promotion Planning to record either one-time events, such as the millennium, or repeated events
such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons,
free-standing inserts, competitors' activities, market intelligence. Examples of events that also have
an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as
hurricanes, and tornadoes.
??Promotional uplifts can be defined in units or percentages by promotion patterns. A promotion
pattern that occurred in the past can be automatically detected using sales history or estimated by the
planner. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a
promotion of the same type is repeated. A copy function in the promotion catalog also supports
"like" modeling of "like products," "like regions," and so on. Several techniques are available for
estimating the impact of a historical promotion such as multiple linear regression with or without a
trend or seasonality.
© SAP AG AP210 9-8

Evaluations in APO
? Using the SAP BW Business Explorer you can evaluate:

? Order data from the liveCache
? Aggregated data in InfoCubes
Extraction Planning
structure area
RemoteCube
liveCache
Business Explorer DP InfoCube
? SAP AG 2001
??You can also evaluate data from APO using the SAP BW frontend.
??Itis not only the aggregated actuals from the InfoCubes that are evaluated, but also all of the order
and time series objects from the liveCache.
??The prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO;
an extraction structure for the planning area; an InfoSource, and an SAP RemoteCube that reflects
the liveCache data.
© SAP AG AP210 9-9

Recommended Follow-up Activities
? Go through the exercises using Demand Planning Example

? Read online documentation
? Read IMG documentation
? Read release notes
? SAP AG 2001
© SAP AG AP210 9-1 0

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AP210 Demand Planning

© SAP AG AP210 Preface-1

Copyright 2001 SAP AG. All rights reserved.

All rights reserved.

© SAP AG AP210 Preface-2

Level 2 Level 2 Level 3

5 days Demand Planning

AP205 2 days AP220 3 days

LO060 5 days AP230 2 days

© SAP AG AP210 Preface-3

? AP010 SAP APO Overview

? LO935 Flexible Planning

© SAP AG AP210 Preface-4

? Project team members who are responsible for

??Notes for the user

© SAP AG AP210 Preface-5

© SAP AG AP210 Preface-6

2300 Barcelona 2400 DC Milan

© SAP AG AP210 Preface-7

P-102, P-103, P-104

P-102, P-103, P-104

© SAP AG AP210 Preface-8

? Customers of sales organization 1000 (Germany), distribution channel 10, division

© SAP AG AP210 Preface-9

APO APO APO

Pump P-100 only

Legend: (Demo material number for SD, consulting)

© SAP AG AP210 Preface-10

© SAP AG AP210 1-1

At the conclusion of this course, you will be able to:

? Configure Demand Planning in APO

© SAP AG AP210 1-2

Unit 1 Course Overview Unit 6 Forecasting

© SAP AG AP210 1-3

© SAP AG AP210 1-4

? The Precision Pump company will implement APO

© SAP AG AP210 1-5

© SAP AG AP210 1-6

© SAP AG AP210 1-7

Company 1 Company 2 Customer

? Understanding demand in a dynamic business environment

© SAP AG AP210 1-8

Supply Network Planning (SNP)

Production Planning (PP)

Detailed Scheduling (DS)

© SAP AG AP210 1-9

Transportation Transportation Planning

© SAP AG AP210 1-1 0

Cockpit Problem Resolution

Others Alert Monitor

??Exception messages in APO are generally known as alerts.

© SAP AG AP210 1-1 1

Demand Planning specific data Central Data Pool

© SAP AG AP210 1-1 2

? Using the BW Business Explorer you can evaluate:

Business Explorer DP InfoCube

© SAP AG AP210 1-1 3

InfoCubes are used to store

© SAP AG AP210 1-1 4

Collaboration Interactive Planning

Planning book I Planning book II

Time series Orders

Actuals Business Core

© SAP AG AP210 1-1 5