How to Force 100 % Resource
Utilization in SAP APO Supply
Network Planning OptimizationBased Planning?
Applies to:
Supply Chain Management 7.0.For more information, visit the Supply Chain Management homepage.
Summary
The paper describes how to reach 100 % resource utilization in SAP APO Supply Network Planning
Optimization-Based Planning with resource capacity variants. When you penalize falling below the minimum
resource utilization and the minimum resource capacity is 100 % the SNP Optimizer will always try to plan for
100 % resource utilization even if the demands are not sufficient for full utilization.
Author:
Dr. Frank Horlacher
Company: SAP AG
Created on: 11 May 2010
Author Bio
Dr. Frank Horlacher is working for SAP in Supply Chain Management Content Expert in the
Fast Implemenation Team. He has 10 years experience in SAP APO development and solution
management in supply chain management production planning, detailed scheduling,
manufacturing execution and optimization system integration. Area of Expertise:SAP APO
Modules: DP, SNP, PP/DS, ATP, CIF;Characteristic Dependent Planning; SAP ERP
Modules:SD, MM, PP, VC, FI-CO
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Table of Contents
Requirement ................................................................................................................................................. 3
Configuration and master data ...................................................................................................................... 3
Specify capacity variants in customizing .................................................................................................... 3
Defining capacity variants in the resource master data ............................................................................... 4
Create Definitions ........................................................................................................................................................ 4
Optimization-Based Planning with capacity variants ................................................................................... 8
Related Content .......................................................................................................................................... 13
Disclaimer and Liability Notice ..................................................................................................................... 14
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Requirement
Even in Demand-Driven Supply Chains there might be a need to plan for 100 % resource utilization although
the demands are not sufficient to fully load the resource. Reasons for that can be manufacturing constraints
or financial requirements on return of investment on assets.
Configuration and master data
Planning with capacity variants in SAP APO Supply Network Planning Optimization-Based Planning can fulfill
the requirement for 100 % capacity utilization without sufficient demand quantities. The procedure is to
define costs for falling below a minimum available capacity or for using the normal capacity or for increasing
the capacity to a maximum. The objective is to achieve 100 % capacity utilization. Therefore we define the
normal available capacity equal to the maximum available capacity equal to the minimum available capacity
assuming we always use the same shift model in all three capacity variants. The cost for falling below the
minimum available capacity is very high. The SNP optimizer then creates planned orders to not fall below the
minimum available capacity. If the minimum available capacity is defined as 100 % of available capacity the
result is 100 % resource utilization all the time.
Specify capacity variants in customizing
In customizing we need to specify 3 capacity variants:
Minimum capacity variant
Normal capacity variant
Maximum capacity variant
A resource can have these 3 capacity variants for operation and assignment of costs.
IMG Menu
Advanced Planning and Optimization  Master Data 
Resource  Specify Capacity Variants
Transaction Code
SPRO
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization-Based Planning?
Capacity Variant 1 gets the Minimum Capacity. Capacity Variant is the Normal Capacity and Capacity
Variant 3 is automatically the Maximum Capacity.
I needed quite some time to find how to define the customizing here because it is nowhere really documented. I
hope my paper helps you and saves time in the SNP implementation.
Defining capacity variants in the resource master data
See also Configuring Master Data for the Optimizer and Defining Capacity Variants
Transaction: /SAPAPO/RES01 – Resource
Create Definitions
1. In the resource maintenance screen press button Definitions.
2. In the Change/Create Definitions screen go to tab Quantities/Rates.
3. Enter the Name of Quantity/Rate Definition.
4. Enter the number of periods, period type bucket capacity, unit and cost.
5. Create three definitions. One for minimum, normal and maximum capacity utilization each.
6. Assign high costs to the definition for minimum capacity utilization.
In my example I use automatic cost generation for the SNP Optimizer. The only cost I maintained here is the
cost for falling below the minimum capacity because I want to force the optimizer to use the normal available
capacity which is the same as the maximum capacity.
Create capacity variants
1. In the resource header screen data press button Capacity Variants.
2. In the capacity variants screen go to tab Cap.Var.Qty.
3. Mark the resource in the table and press button
4. In the pop-up enter capacity variant 1.
5. Specify and interval from and to.
6. For capacity variant enter the Qty/Rate Definition you created earlier for the minimum capacity.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
7. Press enter.
8. Repeat steps 3 to 7 for the normal and maximum capacity variants for the same interval.
9. Save your entries.
10. Go back to the resource header view.
11. Go to tab General Data.
12. Enter 2 in the Active Available Capacity Variant.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
13. If you get the following pop-up:
Ignore it.
14. Save your entries
15. To check the available capacity press button Capacity Profile.
16. In the Display Capacity Profile Quantity Capacity view you should see the three variants in the tree,
the capacity per bucket and the costs. If you are in the Display Capacity Profile Time Capacity view
press button Available Bucket Capacity.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Optimization-Based Planning with capacity variants
When you prepared all you supply chain master data the capacity variants should be visible in the Capacity
View of the Interactive Supply Network Planning Desktop .
Transaction: /SAPAPO/SDP94 - Interactive Supply Network Planning (all Books)
In the above example you can see that the Normal Available Capacity is equal to the Maximum and
Minimum Available Capacity. The number of hours per day of available capacity is defined in the capacity
profile in the resource master.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization-Based Planning?
When we run the SNP Optimizer we can see costs for falling below the minimum production capacity.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Comparison of capacity utilization with and without costs for falling below the minimum capacity production
capacity
Planning result with costs for falling below the minimum capacity production capacity: the resource utilization
is 100 % every day. The production is at its maximum 4 500 t every day.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Planning result without costs for falling below the minimum capacity production capacity: the resource
utilization is clearly below 100 % every day. The production is equal to the requirements.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
The result of 100 % resource utilization planning may lead to serious overproduction. But this may also be
desired for some products.
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization -Based Planning?
Related Content
How to Plan Campaigns in SAP APO Supply Network Planning for a Steel Plant
Determine Setup ID in APO by Characteristic Values
How to plan with constrained storage in APO Supply Network Planning with Optimization-Based Planning?
For more information, visit the Supply Chain Management homepage
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How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization-Based Planning?
Disclaimer and Liability Notice
This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not
supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this do cument,
and anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.
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