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Deployment

After production is complete, deployment determines which demands can be fulfilled by the existing supply. If there
are insufficient quantities available to fulfill the demand or the quantities available exceed the demand, deployment
makes adjustments to the plan created by the SNP run.
The deployment run generates deployment stock transfers based on the SNP stock transfers that were created during
the SNP run. The Transport Load Builder (TLB) then uses these deployment stock transfers to create transport loads,
thus generating TLB shipments.

Note
You can run deployment from the interactive planning table in Supply Network Planning (on the SAP Easy
Access screen, choose Supply Network Planning Planning Interactive Supply Network Planning ), or as a
background job (on the SAP Easy Access screen, choose Supply Network Planning Planning Supply Network
Planning in the Background Deployment or Deployment Optimization).

Prerequisites
You cannot use deployment for stock transfers involving storage location MRP areas. For more information,
seeStock Transfer with Storage Location MRP Areas.

Features
Deployment Heuristic
The deployment heuristic creates a distribution plan for one product at one location. If the available quantities are
insufficient to fulfill the demand, the system uses fair share rules to determine the distribution plan. However, if
there is more supply than is necessary to meet demands, the system uses push rules to determine the distribution
plan. You define fair share and push rules in the SNP deployment profile. For more information, see Deployment
Heuristic.

Real-Time Deployment
This variant of the deployment heuristic is used to execute deployment based on the most recent results from the
SNP run. Here, the system considers the current demand situation at the destination locations by first executing an
SNP run between the source location and its associated destination locations before the actual deployment run.
When using fair share rule B (see Deployment Profiles), it is particularly important that distribution is based on the
most exact calculation of target and planned stock levels possible.

Deployment Optimization
The deployment optimizer creates a distribution plan for all the products you chose in all the chosen locations of the
supply chain model. In the main, the deployment optimizer bases its decisions on all the costs defined in the supply
chain model (such as transportation and storage costs), as does the SNP optimizer. It also takes into account the
following factors:
Fair share rules and push rules
Constraints such as transportation capacity, storage capacity, and transportation lot sizes.
You make most of the deployment optimization settings in the SNP deployment optimizer profile (see Deployment
Optimizer Profiles). For more information, see Deployment Optimization.

Deployment Heuristic
Purpose
The deployment heuristic creates a distribution plan for one product at one location of the supply chain model.
Once production is complete, the system first checks what product quantities are actually available at the source
locations (locations where there is stock). The sum of these product quantities is known as the available-todeploy (ATD) quantity. The system then determines how the ATD quantity is to be distributed to destination
locations (locations where there is demand). The system considers the various distribution rules if the available
product quantities exceed or fall below the demand (fair share and push rules). You can set these rules in the
SNP deployment profile or on the SNP 2 tab page of the location product master. Deployment takes into
account a number of deployment horizons that you also define in the location product master.

Distribution Rules
Fair Share Rules
If demand exceeds supply, the system can use fair share rules to calculate deployment using the available-to-deploy
(ATD) quantity. Various methods use fair share rules to assign a limited amount of available product to sources of
demand. The following rules are available:
Fair Share Rule A: Proportional Distribution Based on Demands
The objective of fair share rule A is to distribute the stock proportionally to all demand locations according to
planned distribution demand.

Fair Share Rule B: Proportional Distribution Based on Target Stock


The objective of fair share rule B is to raise the stock levels at all demand locations to approximately the same
percentage of target stock level. The percentage at each destination location is defined as the deploymentrelevant stock (=stock on hand SNP stock transfers) divided by the target stock level. If the deploymentrelevant stock, is negative the system first attempts to raise the stock level at all destination locations up to
zero. The system then attempts to raise the stock level at all destination locations to the same target stock level
percentage.

Fair Share Rule C: Percentage Distribution Based on Quota Arrangements


The objective of fair share rule C is to distribute the stock according to quota arrangements at the demand
locations. To apply rule C, you have to define outbound quota arrangements for source location products in the
Supply Chain Engineer.

Fair Share Rule D: Distribution Based on Distribution Priority


The objective of fair share rule D is to distribute stock according to priorities that you defined for the outbound
transportation lanes of the source location (distribution priority). At the onset of a fair share situation, the
system attempts to fulfill all of the current dates demands until the ATD quantity is exhausted. For example,
you have three outbound transportation lanes to your destination locations (A, B, and C), each with
corresponding priorities (1, 2, and 3). Your ATD quantity is 150 pieces and the required quantity in each
location is 100 pieces. If you choose fair share rule D, destination location A receives a quantity of 100 pieces
over the transportation lane with priority 1. Destination location B receives a quantity of 50 pieces over the
transportation lane with priority 2, and destination location C receives nothing over the transportation lane with
priority 3.

Push Rules
SNP only uses push rules to calculate deployment if the ATD quantity covers the demand. The following rules are
available:
Pull Distribution
Deployment fulfills all of the demand within the pull deployment horizon (for definition, see below). Products
are distributed according to the due date specified at the demand locations. The system does not distribute any
supply to the demand source in advance of the demand date.
Pull/Push Distribution
The system immediately distributes all supply to the demand locations (ignoring the demand dates specified at
the demand locations) to fulfill all demands within the pull deployment horizon.

Push Distribution by Demand


The system immediately distributes the entire supply for the entire planning horizon to the demand locations to
fulfill all demands. The pull deployment horizon is ignored.
Push Distribution by Quota Arrangement
The system immediately distributes the supply according to the quota arrangements defined for the demand
location. The demand situation at destination locations is ignored.
Push Distribution Taking the Safety Stock Horizon into Account
The system confirms planned issues that are to be covered by safety stock at the source location if the
difference between the demand and deploy date is smaller than the safety stock horizon (see below). This
means, the system will only fall below the safety stock level that you defined on the Lot Size tab page of the
location product master if the demand to be fulfilled is in the safety stock horizon. Note that the safety stock
horizon moves forward (rolls) with planning.
The following example illustrates the three push rules: Pull distribution, pull/push distribution,
andpush distribution by demands.

Pull distribution - A quantity of 200 is distributed to the distribution centers on every day within
the pull horizon where there is existing demand (four days into the future).
Pull/Push - A quantity of 200 pieces is distributed on the first day, when supply amounts to 200
pieces. On the second day, a quantity of 600 pieces is distributed. Although supply is 1000 pieces,
the demand within the pull horizon is for only 600 pieces, so only 600 pieces are distributed.
Push distribution by demands - 200 pieces are distributed on the first day when supply amounts
to 200 pieces; on the second day, when the supply is 1000, 1000 pieces are distributed. Since the
demand in the system is 1400, all the supply can be distributed. A demand of 200 at the end of the
planning horizon is left unfulfilled due to insufficient supply within the push horizon. If the
demand in the system had been 800, only 800 would be distributed on the second day.

If you set the Push not allowed indicator on the SNP tab page of the location master (only
possible in active version), the available supply is distributed according to the daily demand at the
demand locations only.

Deployment Horizons
The deployment heuristic takes into account the following four different deployment horizons (that you define on
theSNP2 tab page of the location product master):
Pull deployment horizon: This horizon refers to the period of time over which deployment takes into account
the planned distribution demand. The horizon starts from todays date.
During the deployment run, the system attempts to fulfill all distribution demands within this horizon.
Distribution begins on the first day for which distribution demands exist in the system and ends on the last day
of the pull deployment horizon.
The pull deployment horizon is also used during push distribution. In this instance, it specifies whether the
demand is to be fulfilled immediately (pull/push distribution) or according to the due date (pull distribution). It
puts a limitation on the date by which SNP stock transfers are to be considered as relevant for deployment.
Within this horizon, deployment only fulfills planned demand that has been confirmed.
Push deployment horizon: This horizon refers to the period of time over which deployment takes into account
the receipts defined in the ATD receipt category group of the location master. The horizon starts from todays
date.
If push distribution has been specified (if the distribution demand is smaller than the supply and stock on hand),
this horizon determines whether stock on hand is to be distributed before the distribution demand due date
according to the push rule specified. Only stock on hand within the push deployment horizon is taken into
account for push deployment (deployment before the actual demand date).
Safety stock horizon: This horizon is only used during push rule Push distribution taking the safety stock
horizon into account (for an explanation, see below).
SNP checking horizon: Deployment uses this horizon to calculate the quantity available for distributing to
demand locations. It puts a limitation on the quantity that is available within the push deployment horizon.
Within the SNP checking horizon, deployment calculates the ATD quantity for a period by adding up the ATD
receipts from the current and preceding periods, and subtracting all the ATD issues within the SNP checking
horizon.

Running the Deployment Heuristic


Use
After production planning is complete and the system knows what is actually to be produced (this information is
stored automatically in liveCache), the deployment run generates deployment stock transfers.

Prerequisites
You have maintained category groups in Customizing for Supply Network Planning (Maintain Category
Groups). You then have to assign these category groups to a location in the location master data (the SNPtab
page). (Default settings: ATD receiptsATR, all categories that describe demand; ATD issuesATI, all
categories that describe supply.)


Master Data Setup for Deployment Heuristic
You have maintained the relevant deployment heuristic profiles.
You have run the SNP heuristic, SNP optimizer, supply and demand propagation, or Capable-to-Match (CTM)

Procedure
1.
2.

3.
4.
5.

6.

7.

8.

From the SAP Easy Access screen, choose Supply Network Planning Planning Supply Network
Planning in the Background Deployment. The Supply Network Planning: Deploymentscreen appears.
1. Enter the planning book and data view.
2. Enter an SNP planning profile that you defined in the Customizing. This contains basis settings for the SNP
planning procedures. If you do not specify a profile, the system uses the default profile activated in the
Customizing.
3. Enter a parallel processing profile that you defined in the Customizing for SNP. This determines how the
background jobs are divided into parallel processes.
4. In the Deployment Horizon in Days field, enter the number of days you want the system to take into
account during its deployment calculations.
5. Enter a selection profile in which you stored your selections in interactive Supply Network Planning or
manually select planning data. When selecting this data manually, enter the planning version, location (or range
of locations), and product (or range of products) that you want to plan.
6. In the Destination Locations field, you can limit deployment of supply to specific destination locations.
You may wish to use this option if there are high priority destination locations, such as VMI customers. You
should run deployment for important destination locations first.
7. Choose one of the following options to indicate how you wish the system to proceed with the SNP stock
transfers after the deployment run:
Select Do not change if you only want to run a simulation (so that no deployment stock transfers are
created).
Select Reduce if you want the system to create deployment stock transfers and reduce the SNP stock
transfers accordingly.
Select Delete if you want the system to create deployment stock transfers and delete all the SNP stock
transfers from within the planning period, irrespective of whether or not they were able to be confirmed by
the deployment run.
8. Set the Real-Time Deployment indicator, if you wish the system to take into account the current demand
situation at the destination locations during the deployment heuristic run instead of the results from the last
SNP run. Enter a Deployment Destinatn Location if you want the demand of only this destination location to be
considered during real-time deployment.
For real-time deployment, you can specify that you want already existing deployment stock transfers to be
deleted and replanned during this planning run. The following options are available:
Select Replan All if you want the system to delete all deployment stock transfers that exist from the
selected source location to the selected destination locations and to replan them on the basis of the current
demand situation.
Select Replan Non-Fixed if you want the system to delete all non-fixed deployment stock transfers that
exist from the selected source location to the selected destination locations and replan them on the basis of
the current demand situation.

9.

Select Do Not Delete if you do not want the system to delete any existing deployment stock transfers.
The demand situation at the destination locations is used as a basis for creating new deployment stock
transfers (taking into account the confirmed distribution receipt).
9. Make settings for the application log generated in the planning run. In the log availability field, enter the
number of days you want the log to be saved for. The default value is 30 days.
You define whether the log contains detailed information, such as data for the deployment stock transfers
created, and whether this is displayed directly at the end of the planning run. You can also display the log after
the heuristic run by choosing Display Logs.
You can also specify whether you want a spool list to be generated as well as the application log, and whether
you want this to be displayed automatically at the end of the planning run.
Set the No Message for Missing Destination Loc. indicator if you do not want the following message to
appear: No destination locations found for material &1, location &2. This message is frequently displayed

(particularly when multiple products are selected) if the system does not determine a destination location for a
source location product during the deployment run.
10. 10. Set the Do Not Use Alerts indicator if you do not wish to use the Alert Monitor and want to improve
performance of the deployment run.
11. 11. Choose Execute.

Result
After the deployment run, the system automatically converts SNP stock transfers into deployment stock transfers,
which are used for transportation planning in the Transport Load Builder (TLB).

Deployment Heuristic Profiles


Use
The following table describes the profiles used by the deployment heuristic. You can define these profiles partly in
the location product master and partly in the Customizing or in the current settings for Supply Network Planning
(SNP). For more information, see the Implementation Guide (IMG) or the field-level help (F1 help).

Profile

Use in Deployment Run

Planning calendar
(time streams)

Specifies the planning calendars the system uses to determine when you can produce,
transport, and so on.

SNP demand profile Specifies how the system calculates demand. You define the pull deployment horizon in
(product master)
this profile.
SNP supply profile
(product master)

Specifies how the system calculates supply. You define the push deployment horizon in
this profile.

SNP deployment

Specifies the logic used by the system to distribute the available supply to the demand

Profile

Use in Deployment Run

profile

locations. You define distribution rules in this profile.

SNP rounding
profile

Specifies how the system is to round order proposal quantities to create deliverable units.

SNP lot size profile In this profile, you define minimum and maximum lot sizes for the shipment. You then
(transportation
specify this profile for one specific product in the Product-Specific Means of
lanes)
Transportsection of the transportation lane. You can thus define minimum and maximum
transportation lot sizes for specific products.
If you wish to make shipments in integer multiples of a transportation lot size only, you
can also define the transportation lot size as a rounding value in this profile.
SNP planning
profile

In this profile, you can make basic settings for the various SNP planning procedures,
such as heuristic, optimizer, deployment heuristic, deployment optimizer, and Transport
Load Builder (TLB).
The SNP planning profile that you activate in the SNP Customizing under Maintain
Global SNP Settings applies globally for all SNP planning procedures. For some
planning procedures, you can overwrite the settings of the active profile by entering
another SNP planning profile during execution of planning in the background.

Parallel processing
profile

You use this profile to define how background jobs are divided in parallel processes. You
can specify the number of concurrent parallel processes, the number of objects per
processing block, and the server group. You define the profile for each application
function, for example deployment heuristic.

eployment Optimization
Purpose
The deployment optimizer creates a distribution plan for all products you selected in all selected locations of
your supply chain model. Once production is complete, the system first checks what product quantities are
actually available at the source locations (locations where there is stock). The sum of these product quantities is
known as the available-to-deploy (ATD) quantity. The system then determines how the ATD quantity is to be
distributed to destination locations (locations where there is demand). To do this, the optimizer considers the
following factors:
Distribution rules (such as fair share and push rules) if the available product quantities exceed or fall below the
demand.
All costs defined in the supply chain model, such as transportation costs, storage costs, and penalties for nondelivery.
Constraints such as transportation capacity, storage capacity, and transportation lot sizes.

You define constraints and distribution rules in the SNP deployment optimizer profile. In this profile, you can
also define additional parameters for deployment optimization, such as decomposition methods for improving
runtime.
The aim of the deployment optimizer is to find the most cost-effective plan from all feasible plans (plans that
consider all the specified constraints).

Distribution Rules
Supply Shortage
If the deployment optimizer detects that the ATD quantity falls below the demand at the destination locations, it
applies the supply shortage rule you defined in the SNP deployment optimizer profile. The following rules are
available:
Distribution Based on Lowest Costs
When calculating the product quantities to be distributed, the deployment optimizer only considers the costs
defined in the supply chain model and the constraints specified in the SNP deployment optimizer profile. The
calculated distribution plan will be the plan with the lowest costs.
With this option, it is possible that the demand at one location will not be covered because the demand at
another location can be covered at less cost.
Fair Share Distribution by Demands
The deployment optimizers main objective is to distribute the ATD quantities evenly, according to the
demands (sales orders and forecasts) at the destination locations.
When distributing the calculated quantities, the system also considers the costs defined in the supply chain
model. For example, if transportation costs are high, the optimizer can decide not to distribute the allocated
amount directly to a demand location, but rather to make a detour through another location. If the calculated
fair share quantities cannot be distributed to individual locations due to identified constraints, these quantities
are distributed to other destination locations on the basis of costs.
Earliest Delivery
When used in conjunction with the Fair Share by Demands option, you can specify that, in fair share
distribution, the deployment optimizer is to completely fulfill the earliest demands if possible, before planning
the fulfillment of later demands. If you do not choose this option, the optimizer will attempt to distribute the
ATD quantities evenly over the demands in various periods.

Supply Surplus
If the deployment optimizer detects that the ATD quantity exceeds the demand from the destination locations, it
applies the supply surplus rule you defined in the SNP deployment optimizer profile. The following rules are
available:
Distribution Based on Lowest Costs
When calculating the product quantities to be distributed, the deployment optimizer only considers the costs
defined in the supply chain model and the constraints specified in the SNP deployment optimizer
profile.However, as a rule, the system does fulfill all demands at the destination location, since high nondelivery costs prevent a demand from not being fulfilled. The optimizer distributes excess stock to the lowest
cost locations.This does not necessarily have to be a location where there is demand.
Push Distribution by Demand

The deployment optimizers main objective is to distribute the ATD quantities evenly, according to demands at
the destination locations. Since the ATD quantity exceeds the demand quantity, the calculated percentage, in
contrast to the fair share situation, is over 100% (the destination locations may receive a quantity that exceeds
their demand).
As with fair share distribution, when distributing calculated quantities, the system also considers the costs
defined in the supply chain model and, if necessary, accepts detours in the supply chain, if this means that the
total cost can be reduced.
Earliest Delivery
When used in conjunction with the option Push Distribution by Demand, you can specify that, in push
distribution, the deployment optimizer is to distribute all available ATD quantities to destination locations at
the earliest demand time. If you do not choose this option, the optimizer will attempt to distribute the ATD
quantities evenly over the demands in various periods.

Consideration of Costs
The deployment optimizer considers the following costs defined in the supply chain model:
Storage and transportation costs
Costs for increasing storage, transportation and handling capacity
Safety stock penalty
Late delivery penalty
Non-delivery penalty
You use the SNP cost profile to set the relative importance of different cost types.

Consideration of Constraints
The optimizer considers that a plan is feasible when it satisfies all the supply chain model constraints that you set in
the SNP deployment optimizer profile. A feasible solution might involve due date or safety stock constraint
violations. Due dates and safety stocks are soft constraints (constraints to which you assign violation costs). The
optimizer only proposes a plan that will violate soft constraints if, according to the costs specified in the system, it is
the most cost-effective plan.
The optimizer uses the linear programming method to take account of all planning-problem-related factors
simultaneously within one optimal solution. As more constraints are activated, the optimization problem becomes
more complex, which usually increases the time required to solve the problem. As a rule, you should run
optimization as a background job.
The optimizer makes a distinction between continuous linear optimization problems and discrete optimization
problems.

Linear Optimization
You can choose one of the three following methods from the SNP deployment optimizer profile to solve continuous
linear deployment optimization problems:
Primal simplex method
Dual simplex method
Interior point method

All three methods arrive at an optimal solution. Runtime could be the main influencing factor when deciding which
of these methods to use. However, there is no general rule for selecting the best method for a given problem (apart
from to test each method individually). A good way of assessing the application is to do a benchmarking based on a
test scenario. This is because the optimal choice of method depends more on the structure of the supply chain and
less on the input data. Therefore, in a productive environment, daily benchmarking is not necessary.

Discrete Optimization
A problem is not continuous (and is therefore discrete) for the deployment optimizer when the model contains:
Discrete (integer value) lot sizes for transportation
Discrete means of transport
Minimum lot size for transportation
Piecewise linear cost functions for transportation
Storage, transportation and handling capacity
If you want the optimizer to consider any of the above constraints, you must use one of the discrete optimization
methods from the SNP deployment optimizer profile.
The piecewise linear cost function that you can define in master data makes a distinction between the convex cost
function (cost per unit increases for higher volumes; for modeling overtime or night shifts for instance) and
theconcave cost function (cost per unit decreases for higher volumes; for modeling freight rates for instance).
Convex cost functions do not complicate the planning problem and can be solved efficiently. However, they can also
be modeled using alternative modes without using piecewise linear cost functions.
In contrast, concave piecewise linear cost functions cannot be solved by an LP solver but only by using
discretization methods (mixed integer linear programming). If piecewise linear functions are modeled but the
optimizer is run without discretization or the discretization horizon is smaller than the planning horizon, the
optimizer takes into account the linear cost function defined in addition to the piecewise linear cost function.

The discrete optimization method cannot be used with strict prioritization (see below).
Using the discrete optimization method can significantly increase runtime requirements. Note that
Supply Network Planning is a medium-term planning function and its focus should not be on
solving integer problems (that is, using the discrete optimization method).

Decomposition
The primary focus of decomposition is on reducing the runtime and memory requirements of optimization.
Decomposition may also represent the only way for the deployment optimizer to find a feasible solution in the event
of large discrete problems.
Decomposition is a flexible tool for the user to balance the tradeoff between optimization quality and required
runtime. When runtime is unrestricted, the optimizer usually provides a better (optimal) solution without
decomposition; however, when a fixed runtime has been specified, using decomposition could assist the optimizer to
find a better or, in fact, feasible solution.

The decomposition methods available for the deployment optimizer are detailed below. The time, product, and
internal deployment decomposition methods can be used in conjunction with the linear and discrete optimization
methods. It is only advisable to use resource decomposition in conjunction with discrete optimization.
Time decomposition speeds up the solution process by dividing the source problem into a series of partial
problems. These sub-problems are then solved in sequence.
Product decomposition speeds up the solution process by forming product groups. The complete model solves
one product group at a time according to the window size chosen. The rule of thumb is as follows: The smaller
the window size, the less time it will take to find a solution, but the larger the window size, the better the
quality of the solution found.
Resource decomposition speeds up the solution process by analyzing the material flow and basic optimizer
decisions about transportation and storage determine a resource sequence. The optimizer can then create subproblems for the individual resources, which are solved in sequence. The optimizer makes decisions in every
sub-problem that cause the resource to be loaded.
It is particularly advisable to use resource decomposition if the resources are always loaded in a similar
sequence. Resource decomposition does not reduce memory requirements. If you would like to reduce memory
requirements, you could use time decomposition alongside this decomposition method. Resource
decomposition cannot be used in conjunction with product decomposition or strict prioritization.
Internal deployment decomposition can speed up the solution process by dividing the optimization problem
into the smallest partial problems possible. These partial problems are then solved sequentially. It is particularly
advisable to use this decomposition method if the supply chain model has a particular problem structure. For
example, is the model does not contain capacitiy restrictions, the products can be distributed independently in
deployment, which can help reduce runtime.
You can also use the SNP priority profile to define priorities for product and resource decomposition, that is, you
can change the sequence in which the optimizer groups and plans products and resources in partial problems. For
more information, see the SNP Priority Profile section in
Decomposition (SNP optimizer documentation).

Prioritization
The deployment optimizer can differentiate between the priority of sales orders and forecast demand. With strict
prioritization, sales orders always have priority 1, the corrected demand forecast priority 5, and the demand forecast
priority 6. Within every priority class, the system uses all available cost information to determine the final solution.
If you are using cost-based prioritization, the optimizer uses penalty cost information from the product master data
(on the SNP1 tab page) to determine the optimal solution.

Other Considerations
The deployment optimization run results do not include pegging orders back to the original individual
requirements because requirements are bucketed.
The deployment optimizer considers the entire capacity and the entire alternative capacity that is globally
available (at all locations).
In the event of a capacity overload, the deployment optimizer, depending on the system settings, either does not
provide a solution or increases the capacity based on a penalty cost calculation.
The deployment optimizer considers the shelf life of a product in a restricted way (see the information about the
SNP optimizer in
stock planning, which is also applicable to the deployment optimizer).

The deployment optimizer considers the three following deployment horizons: Pull deployment horizon, push
deployment horizon, and SNP checking horizon. You define these in the deployment optimizer profile.

Running Deployment Optimization


Use
After production planning is complete and the system knows what is actually to be produced (this information is
stored automatically in liveCache), the deployment optimization run generates deployment stock transfers. You can
run deployment optimization in the background and in interactive Supply Network Planning.

Prerequisites
You have maintained category groups in Customizing for Supply Network Planning (Maintain Category
Groups). You then have to assign these category groups to a location in the location master data (the SNPtab
page). (Default settings: ATD receipts - ATI, all categories that describe demand; ATD issues - ATR, all
categories that describe supply.)

Master Data Setup for the Deployment Optimizer


You have maintained the relevant deployment optimizer profiles
You have run the SNP heuristic, SNP optimizer, supply and demand propagation, or Capable-to-Match (CTM)

Procedure
To Run Deployment Optimization in the Background:

12.
13.

14.
15.

16.

17.

From the SAP APO Easy Access menu, choose Supply Network Planning Planning Supply
Network Planning in the Background Deployment Optimization.
1. Enter the planning book and data view.
2. Enter an SNP planning profile that you defined in the Customizing. This contains basis settings for the SNP
planning procedures. If you do not specify a profile, the system uses the default profile activated in the
Customizing.
3. Enter a parallel processing profile that you defined in the Customizing for SNP. This determines how the
background jobs are divided into parallel processes.
4. Enter a selection profile in which you stored your selections in interactive Supply Network Planning or
manually select planning data. When selecting this data manually, enter the planning version, level ID, product
(or range of products), and the location (or range of locations) that you want to plan.
5. Specify the start and end date that you want the system to consider for planning. This entry is optional. If
you do not enter a start and end date, the system uses the planning buckets profile that was specified in the data
view.
Enter the SNP deployment optimizer profile to be used for deployment optimizer calculations. To define
a deployment optimizer profile, choose Supply Network Planning Environment Current
Settings Profiles Define SNP Deployment Optimizer Profiles.
Specify the cost profile that you want to be used for deployment optimizer calculations. To maintain a
cost profile, choose Supply Network Planning Environment Current Settings Profiles Define
SNP Cost Profiles.
6. If required, specify the optimization bound profile that you want to use for the deployment optimizer
calculations. To maintain an optimization bound profile, choose Supply Network
Planning Environment Current Settings Profiles Define SNP Optimization Bound Profiles. In the

accompanying field, you can still specify or choose a previously executed optimization run that you want the
profile specified in theOptimization Bound Profile field to reference.
18. 7. Choose Execute.

To Run Deployment Optimization in Interactive Supply Network Planning:


From the SAP Easy Access screen, choose Supply Network Planning Planning Interactive Supply
Network Planning.
19. 1. Choose
Deployment Optimizer. The Deployment Optimizer window appears.
The pushbutton for accessing the deployment optimizer is displayed on the interactive desktop automatically if
you are using the standard SNP planning book SNP94. However, if you create your own planning books and
wish to use the deployment optimizer in interactive planning, you must specify that you want this pushbutton to
be displayed. You do this in the Design mode of the interactive planning desktop.
20. 2. On the Optimization tab page in the Deployment Optimizer window, you can choose one of your
predefined deployment optimizer profiles, cost profiles, and optimization bound profiles. By choosing the
icons
,
, and
, you branch to the maintenance screens for the deployment optimizer profiles, cost
profiles, and optimization bound profiles to make changes to existing profiles, for example.
21. 3. Choose
to start the optimization run.
The current solution resulting costs determined by the optimizer are displayed in the Current Solution area of
the Optimization tab page. The individual steps of the optimization process are displayed in the Status area
during the optimization run and information about intermediary solutions is displayed in the Solution Run area.
In addition to this, messages about the current optimization run are displayed in the Messages area.
You can also display the products that were selected for this optimization run by choosing
. Choose
to
branch to the Supply Network Planning: Optimizer log file screen. From there, you can decide which type/form
of log to display (the message log, input log, or results in a text file for example.)
22. 4. Choose the Solutions tab page to view information about the previous optimization runs. If you select a
solution in the right-hand screen area, the data corresponding to that solution appears in the left-hand area.
23. 5. Choose the Messages tab page to view messages about the previous optimization runs. If you select an
optimization run in the left-hand screen area, the messages corresponding to that optimization run appear in the
right-hand area.

Result
After the deployment optimization run, the system automatically converts SNP stock transfers into deployment
stock transfers, which are used for transportation planning in the Transport Load Builder (TLB).

Deployment Optimizer Profiles


Use
The following table describes the profiles used by the deployment optimizer. To access each profile individually,
choose Supply Network Planning Environment Current Settings Profiles from the SAP Easy Access
screen. You can also define the profiles in the Customizing for Supply Network Planning (SNP). For more
information, see the Implementation Guide (IMG) or the field-level help (F1 help).

Profile

Use in Deployment Run

SNP deployment
optimizer profile

In this profile, you choose which optimization method you want to use during the
optimization run (linear optimization or discrete optimization) and which constraints you
want the system to take into account. Although almost identical to the SNP optimizer
profile, this profile only contains parameters that are relevant for the deployment
optimizer. It also contains a tab page where you can define deployment-specific
parameters (distribution rules and deployment horizons).

SNP cost profile

In this profile, you assign a weighting to different cost elements in the objective function
(thus determining how the costs relate to one another).
We recommend that you only change the standard settings for test purposes when
modeling. To avoid undesired side-effects, you should not change the default setting of
1.0 in the production system if possible. This setting corresponds to the costs entered in
cost maintenance.

SNP lot size profile In this profile, you define minimum and maximum lot sizes for the shipment. You then
(transportation
specify this profile for one specific product in the Product-Specific Means of
lanes)
Transportsection of the transportation lane. You can thus define minimum and maximum
transportation lot sizes for specific products.
If you wish to make shipments in integer multiples of a transportation lot size only, you
can also define the transportation lot size as a rounding value in this profile.
To enable the deployment optimizer to take into account the minimum lot sizes and
rounding values defined, you have to choose the discrete optimization method in the SNP
deployment optimizer profile.
SNP optimization
bound profile

If you want to perform a new planning run after a deployment optimizer planning run,
you use this profile to improve planning stability by restricting possible decision variable
deviations from the previous optimization plan. For example, you can permit smaller
deviations at the start of the planning horizon and then increase these towards the end of
the horizon to avoid too many last-minute planning changes.
Your new plan does not have to be based on the directly preceding optimization run, you
can also choose earlier runs.

SNP planning
profile

In this profile, you can make basic settings for the various SNP planning procedures, such
as heuristic, optimizer, deployment heuristic, deployment optimizer, and Transport Load
Builder (TLB).
The SNP planning profile that you activate in the SNP Customizing under Maintain
Global SNP Settings applies globally for all SNP planning procedures. For some planning
procedures, you can overwrite the settings of the active profile by entering another SNP
planning profile during execution of planning in the background.

Profile

Use in Deployment Run

Parallel processing

You use this profile to define how background jobs are divided in parallel processes. You
can specify the number of concurrent parallel processes, the number of objects per
processing block, and the server group. In each case, you define the profile for one
specific application function, such as the deployment optimizer.

profile

Product Interchangeability in Deployment


Use
The deployment heuristic and the deployment optimizer take into account SNP product substitution orders that were
created during heuristic-based or optimization-based planning in Supply Network Planning (SNP). In this way, you
can continue to perform the product interchangeability that you planned in the SNP planning run in deployment too.

Prerequisites
You have executed an SNP heuristic run or optimization run during which SNP product substitution orders were
created. For more information, see
Product Interchangeability in Supply Network Planning.
The prerequisites described under Product Interchangeability in Supply Network Planning are also valid for
product interchangeability in deployment. This includes defining product substitution data in the master data
for product interchangeability.
You can define the interchangeability rules for the deployment heuristic at both the source location and the
destination location. Since the deployment optimizer creates a distribution plan for all selected products in all
selected locations in the supply chain model, you must define the rules for the deployment optimizer at each
location that is relevant to product interchangeability.
As is the case for the SNP optimizer, you must have set the Supersession Chain and Form-Fit-Function
Class indicators for the deployment optimizer on the General Constraints tab page in the deployment optimizer
profile.
You have defined the fair share rule A (Proportional Distribution Based on Demands) or one of the push
rules,Pull, Pull/Push, or Push by Demands as the distribution rules for the deployment heuristic in the product
master data. The other distribution rules are not supported.

Features
Deployment confirms the SNP product substitution orders and creates deployment orders or SNP product
substitution orders in the destination location. Deployment creates deployment stock transfers for the products
that replace the discontinued products.
The system deletes or reduces the corresponding SNP product substitution orders and stock transfers.

Activities
24. 1. You perform a deployment heuristic run or a deployment optimization run. You use the standard planning
book 9ASNP_PS with data view PROD_SUBST or your own planning book that you based on the standard
planning book. You also set the Add Products from Supersession Chainsindicator.

25. 2. The system takes into account the product substitution data that has been defined for product
interchangeability in the master data and creates, alongside the deployment stock transfers, deployment product
substitution orders in the Substitution Demand (Confirmed) and Substitution Receipt (Confirmed) key figures,
if required.
26. 3. You display the results in interactive Supply Network Planning.

Example
The following figure shows the result of a deployment heuristic run that was performed on the basis of an SNP
heuristic run while taking into account the product interchangeability data:

In the example, it is assumed that product A can be fully interchanged with product B (A<->B). There is a demand
for 100 pieces of product A at the distribution center. There is a stock of 60 pieces of product A and 40 pieces of
product B at the plant. Since the stock of 60 pieces of A at the plant cannot cover the entire demand for A at the
distribution center, the demand is partially covered by the stock of B. The system proceeds as follows when
planning:
SNP Heuristic (Destination Location):
The system creates a substitution receipt (in other words, an SNP product substitution order) for A (from
B) for 100 pieces.
The system creates an SNP stock transfer for B for 100 pieces.
SNP Heuristic (Source Location):
The system creates a substitution receipt for B (from A) for 60 pieces.
Deployment Heuristic:
The system creates a deployment stock transfer for A for 60 pieces as well as a deployment stock
transfer for B for 40 pieces.

The system creates an SNP product substitution order at the destination location for A for 60 pieces
(from B).

Monitoring TLB and Deployment Alerts


You can use the Alert Monitor to monitor alerts for the Transport Load Builder and for Deployment in Supply
Network Planning (SNP). To do this, you define a TLB alert profile containing a user-specific selection of alerts that
are relevant for your planning area.

Features
The following table shows you the alert types available, and a brief description of each one.

Note
For all the alerts except Invalid Delivery Date, you can enter priority variants based on critical values.
TLB/deployment

Description

alerts
Fair share (general)

The fair share percentage is determined according to the rule specified in the deployment heuristic profile
(SNP2 tab in the location product master). The system triggers this alert if the percentages to deploy to meet
product demand fall below the percentages specified in the master data.

Fair share

Same as above, except in this case fair share distribution refers only to customers instead of locations. (for

(customers only)

example, VMI customers)

Invalid shipment

When the shipment does not fulfill the parameters for the capacity of the means of transport (such as volume,
weight, and pallet positions) defined in the TLB profile, the system generates an alert.

Invalid delivery
dates

You active this alert using the /SAPAPO/TLB_CHK_DATE BAdI.

Activities
1.
2.
3.

Select the alert types that are relevant to you, and define threshold values where required.
Select the objects (products, transportation lanes, means of transport) for which the system should determine
alerts.
If necessary, assign the TLB alert profile to your overall alert profile (see Overall Alert Profile), your SCC User
Profile, or your user in SAP Supply Chain Management (SAP SCM) from the SAP Easy Access screen by
selecting Advance Planning and Optimization Supply Network Planning Environment Current
Settings Assign Planners to Alert Profiles .

Recommendation
For performance reasons, we recommend restricting the number of alerts to be displayed to a minimum.

Deployment Optimization
Purpose
The deployment optimizer creates a distribution plan for all products you selected in all selected locations of
your supply chain model. Once production is complete, the system first checks what product quantities are
actually available at the source locations (locations where there is stock). The sum of these product quantities is
known as the available-to-deploy (ATD) quantity. The system then determines how the ATD quantity is to be
distributed to destination locations (locations where there is demand). To do this, the optimizer considers the
following factors:
Distribution rules (such as fair share and push rules) if the available product quantities exceed or fall below the
demand.
All costs defined in the supply chain model, such as transportation costs, storage costs, and penalties for nondelivery.
Constraints such as transportation capacity, storage capacity, and transportation lot sizes.
You define constraints and distribution rules in the SNP deployment optimizer profile. In this profile, you can
also define additional parameters for deployment optimization, such as decomposition methods for improving
runtime.
The aim of the deployment optimizer is to find the most cost-effective plan from all feasible plans (plans that
consider all the specified constraints).

Distribution Rules
Supply Shortage
If the deployment optimizer detects that the ATD quantity falls below the demand at the destination locations, it
applies the supply shortage rule you defined in the SNP deployment optimizer profile. The following rules are
available:
Distribution Based on Lowest Costs
When calculating the product quantities to be distributed, the deployment optimizer only considers the costs
defined in the supply chain model and the constraints specified in the SNP deployment optimizer profile. The
calculated distribution plan will be the plan with the lowest costs.
With this option, it is possible that the demand at one location will not be covered because the demand at
another location can be covered at less cost.
Fair Share Distribution by Demands
The deployment optimizers main objective is to distribute the ATD quantities evenly, according to the
demands (sales orders and forecasts) at the destination locations.
When distributing the calculated quantities, the system also considers the costs defined in the supply chain
model. For example, if transportation costs are high, the optimizer can decide not to distribute the allocated
amount directly to a demand location, but rather to make a detour through another location. If the calculated
fair share quantities cannot be distributed to individual locations due to identified constraints, these quantities
are distributed to other destination locations on the basis of costs.
Earliest Delivery
When used in conjunction with the Fair Share by Demands option, you can specify that, in fair share
distribution, the deployment optimizer is to completely fulfill the earliest demands if possible, before planning

the fulfillment of later demands. If you do not choose this option, the optimizer will attempt to distribute the
ATD quantities evenly over the demands in various periods.

Supply Surplus
If the deployment optimizer detects that the ATD quantity exceeds the demand from the destination locations, it
applies the supply surplus rule you defined in the SNP deployment optimizer profile. The following rules are
available:
Distribution Based on Lowest Costs
When calculating the product quantities to be distributed, the deployment optimizer only considers the costs
defined in the supply chain model and the constraints specified in the SNP deployment optimizer
profile.However, as a rule, the system does fulfill all demands at the destination location, since high nondelivery costs prevent a demand from not being fulfilled. The optimizer distributes excess stock to the lowest
cost locations.This does not necessarily have to be a location where there is demand.
Push Distribution by Demand
The deployment optimizers main objective is to distribute the ATD quantities evenly, according to demands at
the destination locations. Since the ATD quantity exceeds the demand quantity, the calculated percentage, in
contrast to the fair share situation, is over 100% (the destination locations may receive a quantity that exceeds
their demand).
As with fair share distribution, when distributing calculated quantities, the system also considers the costs
defined in the supply chain model and, if necessary, accepts detours in the supply chain, if this means that the
total cost can be reduced.
Earliest Delivery
When used in conjunction with the option Push Distribution by Demand, you can specify that, in push
distribution, the deployment optimizer is to distribute all available ATD quantities to destination locations at
the earliest demand time. If you do not choose this option, the optimizer will attempt to distribute the ATD
quantities evenly over the demands in various periods.

Consideration of Costs
The deployment optimizer considers the following costs defined in the supply chain model:
Storage and transportation costs
Costs for increasing storage, transportation and handling capacity
Safety stock penalty
Late delivery penalty
Non-delivery penalty
You use the SNP cost profile to set the relative importance of different cost types.

Consideration of Constraints
The optimizer considers that a plan is feasible when it satisfies all the supply chain model constraints that you set in
the SNP deployment optimizer profile. A feasible solution might involve due date or safety stock constraint
violations. Due dates and safety stocks are soft constraints (constraints to which you assign violation costs). The
optimizer only proposes a plan that will violate soft constraints if, according to the costs specified in the system, it is
the most cost-effective plan.

The optimizer uses the linear programming method to take account of all planning-problem-related factors
simultaneously within one optimal solution. As more constraints are activated, the optimization problem becomes
more complex, which usually increases the time required to solve the problem. As a rule, you should run
optimization as a background job.
The optimizer makes a distinction between continuous linear optimization problems and discrete optimization
problems.

Linear Optimization
You can choose one of the three following methods from the SNP deployment optimizer profile to solve continuous
linear deployment optimization problems:
Primal simplex method
Dual simplex method
Interior point method
All three methods arrive at an optimal solution. Runtime could be the main influencing factor when deciding which
of these methods to use. However, there is no general rule for selecting the best method for a given problem (apart
from to test each method individually). A good way of assessing the application is to do a benchmarking based on a
test scenario. This is because the optimal choice of method depends more on the structure of the supply chain and
less on the input data. Therefore, in a productive environment, daily benchmarking is not necessary.

Discrete Optimization
A problem is not continuous (and is therefore discrete) for the deployment optimizer when the model contains:
Discrete (integer value) lot sizes for transportation
Discrete means of transport
Minimum lot size for transportation
Piecewise linear cost functions for transportation
Storage, transportation and handling capacity
If you want the optimizer to consider any of the above constraints, you must use one of the discrete optimization
methods from the SNP deployment optimizer profile.
The piecewise linear cost function that you can define in master data makes a distinction between the convex cost
function (cost per unit increases for higher volumes; for modeling overtime or night shifts for instance) and
theconcave cost function (cost per unit decreases for higher volumes; for modeling freight rates for instance).
Convex cost functions do not complicate the planning problem and can be solved efficiently. However, they can also
be modeled using alternative modes without using piecewise linear cost functions.
In contrast, concave piecewise linear cost functions cannot be solved by an LP solver but only by using
discretization methods (mixed integer linear programming). If piecewise linear functions are modeled but the
optimizer is run without discretization or the discretization horizon is smaller than the planning horizon, the
optimizer takes into account the linear cost function defined in addition to the piecewise linear cost function.

The discrete optimization method cannot be used with strict prioritization (see below).

Using the discrete optimization method can significantly increase runtime requirements. Note that
Supply Network Planning is a medium-term planning function and its focus should not be on
solving integer problems (that is, using the discrete optimization method).

Decomposition
The primary focus of decomposition is on reducing the runtime and memory requirements of optimization.
Decomposition may also represent the only way for the deployment optimizer to find a feasible solution in the event
of large discrete problems.
Decomposition is a flexible tool for the user to balance the tradeoff between optimization quality and required
runtime. When runtime is unrestricted, the optimizer usually provides a better (optimal) solution without
decomposition; however, when a fixed runtime has been specified, using decomposition could assist the optimizer to
find a better or, in fact, feasible solution.
The decomposition methods available for the deployment optimizer are detailed below. The time, product, and
internal deployment decomposition methods can be used in conjunction with the linear and discrete optimization
methods. It is only advisable to use resource decomposition in conjunction with discrete optimization.
Time decomposition speeds up the solution process by dividing the source problem into a series of partial
problems. These sub-problems are then solved in sequence.
Product decomposition speeds up the solution process by forming product groups. The complete model solves
one product group at a time according to the window size chosen. The rule of thumb is as follows: The smaller
the window size, the less time it will take to find a solution, but the larger the window size, the better the
quality of the solution found.
Resource decomposition speeds up the solution process by analyzing the material flow and basic optimizer
decisions about transportation and storage determine a resource sequence. The optimizer can then create subproblems for the individual resources, which are solved in sequence. The optimizer makes decisions in every
sub-problem that cause the resource to be loaded.
It is particularly advisable to use resource decomposition if the resources are always loaded in a similar
sequence. Resource decomposition does not reduce memory requirements. If you would like to reduce memory
requirements, you could use time decomposition alongside this decomposition method. Resource
decomposition cannot be used in conjunction with product decomposition or strict prioritization.
Internal deployment decomposition can speed up the solution process by dividing the optimization problem
into the smallest partial problems possible. These partial problems are then solved sequentially. It is particularly
advisable to use this decomposition method if the supply chain model has a particular problem structure. For
example, is the model does not contain capacitiy restrictions, the products can be distributed independently in
deployment, which can help reduce runtime.
You can also use the SNP priority profile to define priorities for product and resource decomposition, that is, you
can change the sequence in which the optimizer groups and plans products and resources in partial problems. For
more information, see the SNP Priority Profile section in
Decomposition (SNP optimizer documentation).

Prioritization
The deployment optimizer can differentiate between the priority of sales orders and forecast demand. With strict
prioritization, sales orders always have priority 1, the corrected demand forecast priority 5, and the demand forecast
priority 6. Within every priority class, the system uses all available cost information to determine the final solution.

If you are using cost-based prioritization, the optimizer uses penalty cost information from the product master data
(on the SNP1 tab page) to determine the optimal solution.

Other Considerations
The deployment optimization run results do not include pegging orders back to the original individual
requirements because requirements are bucketed.
The deployment optimizer considers the entire capacity and the entire alternative capacity that is globally
available (at all locations).
In the event of a capacity overload, the deployment optimizer, depending on the system settings, either does not
provide a solution or increases the capacity based on a penalty cost calculation.
The deployment optimizer considers the shelf life of a product in a restricted way (see the information about the
SNP optimizer in
stock planning, which is also applicable to the deployment optimizer).
The deployment optimizer considers the three following deployment horizons: Pull deployment horizon, push
deployment horizon, and SNP checking horizon. You define these in the deployment optimizer profile.

See also:
For more information, see the SNP optimizer documentation that is, to a large extent, the same as the deployment
optimizer documentation (see for example,
Application Examples for the SNP Optimizer).
See also:
Deployment Optimizer Profiles
Running Deployment Optimization