APO Optimization
APO Optimization
APO Optimization
Expert Consultant
SCM Optimization
Agenda
Introduction
Customer Cases
System Demo
Operational Data
Demands
Orders
Capacity Profiles
Measure
Supply Chain Performance Management
Strategize Plan
Supply Chain Collaboration
Collaborate
Collaborate
Supply Planning
Supply Supply
Chain Chain
Exchange Exchange
Source Make Deliver
Network Network
Direct Order
Manufacturing
Procurement Fulfillment
Partner Partner
Track
Supply Chain Event Management
long-
Strategic network planning
term
Master planning
Demand
planning
Production Distribution
planning planning
Material
requirements
planning
Available
Detailed Transportation to
short- promise
term scheduling planning
(Stadtler/Kilger, 2005)
Introduction
Customer Cases
System Demo
Plan
Strategize Plan
Direct Order
Manufacturing
Procurement Fulfillment
Strategize
Aggregation
Source Make Deliver
Time Buckets, max. daily precision
Direct Products, Resources Families
Order
Manufacturing
Procurement Fulfillment
SNP Heuristics
Material availability constraints
Rule-based
First feasible plan
SNP Optimizer
Material availability and all capacity constraints
(MI)LP and others
Cost-based optimization
Finite Planning
Lot-Sizing
Multi-Level-Capacitated Lot Sizing (MLCLSP)
Campaign Planning
Inventory Control
Target Days of Supply
Shelf Life
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Srie, 12
Supply Network Optimization: Model Building
Produce
Discrete Lots
Minimal Lots
Transport Fixed Resource Consumption
Discrete Lots Piecewise linear Costs Production
Transport Minimal Lots
Capacity
Piecewise linear Costs
Capacity
PPM
Storage Products
Capacity
Safety Stock
Satisfy Demand
with Demand Classes
Procure Delay Costs
Piecewise linear Costs Non-Delivery Costs
Demand Forecast
SNP Optimization
Resource Selection
Bad results
Setup cost large compared to storage cost (large lots)
Setup consumption big compared to bucket capacity
Strategize
Plan
Manufacturing
Demand(PP/DS)
and
Supply Planning
Combined material and capacity
Source planning
Make Deliver
Short-term to mid-term planning
Direct horizon Order
Manufacturing
Procurement Fulfillment
Order based
Time continuous
PP/DS Heuristics
Material availability, single-level finite
Priority-based planning
First partial plan
PP/DS Optimizer
All constraints
Genetic Algorithm and Constraint Programming
Cost-based Optimization
Delay Reduction
Makespan Minimization
Setup Minimization
Time
Cost
Resource Selection
Setup
sequence dependent
setup costs
Unary
Resources
Product Flow
Storage
discrete
resources
continuous
Multi-Cap
Resources
SNP
PP run
DS
optimization
SNP PP/DS
Planning only in SNP horizon Respect pegged SNP Orders as due
Release SNP Orders only PP/DS dates
horizon No capacity reduction
Respect PP/DS orders as fixed But material flow
capacity reduction No restrictions for scheduling
material flow PP/DS orders
Respect PP/DS setup state
SNP
PP/DS
PP/DS Horizon
SNP Horizon
3
1
m vehicles 2
demand bj
6
5
9 time window [lj,rj]
4
8
7
time window [l,r]
capacity c
supply a
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Srie, 23
VSR: Model Building (ctd)
O4 6
1 5
O1
O2 4
2
O3
3
cost
[ ] [ ] time
Early Late Early Late
Pickup Pickup Delivery Delivery
Per location:
Deliveries require inbound resource
Opening times
Capacities
Pickups require outbound resource
Opening times
Capacities
Incompatibility constraints:
Between material types
Between vehicle types and material types
Between vehicle types and locations
Hubs
Indirect shipment through hub(s) versus direct shipment
Maximum waiting time at hub
1 H2
H1 2
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Srie, 28
Agenda
Introduction
Customer Cases
System Demo
Open Architecture
internal: adding new special optimizer (software evolution)
external: integration of optimizer packages
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Srie, 30
SNP Optimizer Architecture
LiveCache/DB Time-
GUI
Decomposition
Reporting Product-
Model Generator Decomposition
Checking Priority-
Decomposition
Resource-
Core-Model Decomposition
Control Meta-Heuristics
Basic-Optimizers
LiveCache
Time
GUI Model Generator Decomposition
Reporting Bottleneck
Control Meta-Heuristics
Basic Optimizer
Decomposition strategies
SNP: time, resource, product, procurement
DS: time, resource
(Parallelization by Agents)
1 2 3 4 5 6
solved solved
merge
Time-
1 2 3-6 Decomposition
extract
store
solve
SNP
LP/MILP
Resources
Time
Current window
Resources
Bottleneck
Time
Bottleneck Script
1. Determine bottleneck
2. Schedule bottleneck resources only
3. Fix sequence on bottleneck resource
4. Schedule all resources
Generic Optimizer
Preprocessing
Which orders cannot be delivered at all?
Which order can be processed by which vehicle?
Postprocessing
Shift travel activities forward or backward
Introduction
Customer Cases
System Demo
Solution
quality gap
Business (fixed run-time)
acceptability
of computed
solutions
Introduction
Customer Cases
System Demo