Specification for Extensions of S&OP on HANA:

In Transit Key Figures

March 18th, 2014

1. Introduction
When transporting goods from a ship-from location to a ship-to location the amount of
goods is not reflected at either location in the key figure Projected Stock during the
time periods the transport happens. The in transit quantities are subtracted from the
inventory of the ship-from location in the period the transport starts. The in transit
quantities are added to the inventory of the ship-to location in the period of arrival.
This means that the in transit quantities vanish from the users supply chain for all
periods from the ship-from period to the ship-from period plus lead time (they reappear for the arrival period). From a planners perspective it is required, however, to
see the total product quantity in all periods, either at a location or corresponding to a
transport. To resolve this problem SAP S&OP on HANA offers additional In Transit
Key Figures which will show the amount of inventory in transit.

2. In Transit Key Figures

2.1 In Transit Customer Receipts
Technical name: INTRANSITCUSTOMER, key: Customer, Product, Location
Key figure In Transit Customer Receipts describes the in transit quantities which are
on their way from a location to a customer. It is an output key figure of the S&OP
Planning Operator (heuristic or optimizer). Its values are computed in a postprocessing step after a planning algorithm has computed a supply plan. The
procedure to compute the in transit inventory is illustrated in Figure 1 which contains
a customer demand and a location-product (product P at location DC 1). Transports
between DC 1 and the customer C 1 take 3 periods (i.e. they have a lead time of 3
periods). The Outbound Customer Demand is propagated for all 6 periods of the
planning horizon to DC 1. It is assumed that a planning algorithm has computed the
given supplies of 4, 5 and 6 units in period 1, 2 and 3 respectively. Due to the lead
time shift these supplies arrive at the customer in periods 4, 5 and 6. This lead time
shift is shown in key figure Customer Receipts where these quantities appear in
periods 4, 5 and 6. The first three periods are within the Lead Time Horizon.
Customer Receipts in these periods (which are 1, 5 and 0) are assumed to have
been planned by a previous planning run or to have been imported from an external
planning tool.
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Customer Receipts within the Lead Time Horizon can be imported via the so-called
Minimum Key Figures (as explained in another document entitled Specification for
Extensions of S&OP on HANA: Minimum Key Figures).

In Transit Customer Receipts

DC 1 / Product P
C 1 / Product P
Customer Dem.: 1
Tot. Cus. Rec.: 1

2
5

Customer Receipts

In Transit Customer Receipts

15

11

Out. Cust. Dem.

3
0

4 5
4 5

6
6

Lead Time: 3

In Transit Customer Receipts arriving period 2

In Transit Customer Receipts arriving period 3

In Transit Customer Receipts arriving period 4

In Transit Customer Receipts arriving period 5

In Transit Customer Receipts arriving period 6

Dep. Dem.: 4 5 6 _ _ _
Proj. Stock: 0 0 0 _ _ _
Net Dem.: 4 5 6 _ _ _
Receipts: 4 5 6 _ _ _
Supply:
4 5 6 _ _ _

2013 SAP AG. All rights reserved.

Figure 1: Computation of In Transit Customer Receipts

The transport of 1 unit arriving in period 1 at the customer does not imply any In
Transit Customer Receipts as this quantity is no longer in transit at the end of period
1. The transport of 5 units started in the past and arriving in period 2 at the customer
implies an In Transit Customer Receipts of 5 units in period 1. To be more clear: as
these 5 units are still on their way at the end of period 1, they are added to the total in
transit quantity showing how many units are on their way from DC 1 to customer C 1.
As in period 3 there is no transport we do not have any In Transit Customer Receipts
from transports arriving in that period.
The transport of 4 units leaving DC 1 in period 1 and arriving in period 4 at the
customer results in an In Transit Customer Receipts during its transportation time
which includes periods 1, 2 and 3. So, this transport implies an In Transit Customer
Receipts of 4 units in the first three periods as shown in Figure 1.
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Analogously, the transport starting in period 2 at DC 1 and arriving in period 5 at the

customer leads to an In Transit Customer Receipts of 5 pieces in periods 2, 3 and 4.
The overall In Transit Customer Receipts for (DC 1, product P, Customer C 1) is
computed by adding the individual in transit quantities of all transports arriving at
different periods (except the first one). On the example we find an (overall) In Transit
Customer Receipts of 9, 9, 15, 11, 6 and 0 pieces in the six periods.

2.2 In Transit Receipts

Technical name: INTRANSIT, key: Product, Location, Ship-from location
Key figure In Transit Receipts describes the in transit quantities which are on their
way from one location to another location (not the customer). For transports between
locations the in transit computation follows the same algorithm as for transports from
locations to customers see section 2.1. If, however, one of the key figures Minimum
Transport Receipts or Minimum Transport Supply contains values, the in transit
computation has to be completed with an additional step which is explained in this
section. To continue at this point it is a pre-requisite to have read the section about
Minimum Transport Key Figures in the document Specification for Extensions of
S&OP on HANA: Minimum Key Figures. As explained there, the key figures
Minimum Transport Receipts and Minimum Transport Supply can be used to enter
transports which can deviate from the transportation time (lead time) defined in the
S&OP master data. For that reason S&OP on HANA cannot know how long a
transport is on its way and hence, S&OP cannot compute the in transit duration as
explained in section 2.1.
In the following we explain how the in transit quantities of the transports specified by
the Minimum Transport Key Figures are computed. Our explanations start with Figure
2 showing a situation in which 10 units leave DC 2 in period 1 and 20 in period 2.
There is no information about when these 30 units arrive at DC 1 as the lead time
relationship between supply and receipt does not hold. From key figure Minimum
Transport Receipts we just know that 5 units arrive in period 1, 12 in period 2 and so
forth. There is no information about when these quantities left DC 2. We only know
which quantity arrives in which period at DC 1.

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Minimum Transport Receipts / Supply

Lead time: 3

DC 1

DC 2

Min Trans. Receipts

5

12

Min Trans. Supply

10

19

20

2013 SAP AG. All rights reserved.

Figure 2: Transports specified by Minimum Transport Receipts and Supply

To compute the in transits for the example given by Figure 2, the SCM Planning
Operator needs the quantity that is currently in transit for each transportation lane.
Based on the information how many units are on their way from DC 2 to DC 1 (for a
certain product P) at the beginning of period 1 it is possible to compute the in transit
quantities for each period, which is illustrated by the following example:
We assume that the Initial In Transit of product P from DC 2 to DC 1 is 3 units. Then
the In Transit quantities given by the Minimum Key Figures are derived by:
In Transit[1] = 3 + 10 5 = 8
In Transit[2] = 8 + 20 12 = 16
In Transit[3] = 16 + 0 4 = 12
In Transit[4] = 12 + 0 7 = 5
In Transit[5] = 5 + 0 19 = -14

Or in general:
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for period 1:
In Transit[1] = Initial In Transit + Min Transport Supply[1] Min Transport Receipts[1]
and for remaining periods t = 2, 3, , T
In Transit[t] = In Transit[t-1] + Min Transport Supply[t] Min Transport Receipts[t]

The start value for In Transit is given by a new key figure Initial In Transit. The
technical name is: INITIALINTRANSIT and the key is: product, ship-from location,
location. Note: this key figure expects to have a value only for one time period, which
is the planning period corresponding to the current time (analogous to stock on hand
represented by key figure INITIALINVENTORY.

2.3 Example for In Transit Receipts Computation

Based on the example given in Figure 3 we explain how to compute the (overall) In
Transit Receipts when Minimum Transports are used together with normal (S&OPplanned) Transports.

Total In Transit Receipts

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3
0
0
0
3

4
3
4
7
4

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P

1
5
0
2
2
5

6
0
6
6
6

10

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:

Lead Time: 3

0
0
0
0
0

3
0
3
3
3

10
0
10
10
10

4
0
4
4
4

1
0
1
1
1

2
0
2
2
2

Transport Receipts

3 10

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

2014 SAP AG. All rights reserved.

Figure 3: Example with Minimum Transports and S&OP-planed Transports

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As this example is not trivial we first explain how all the key figures are computed
before we introduce the In Transit computation.
As shown in Figure 4 we first compute the Net Demand of period 1 in locationproduct DC 1 / P which is 1 unit. As this Net Demand is covered by the Minimum
Transport Receipts the S&OP SCM Planning Operator does not need to plan
additionally a normal Transport Supply (called S&OP-planned Transport Receipts in
Figure 4), hence this quantity is zero. The Transport Receipts are the sum (per
period) of Minimum Transport Receipts and the SOP-planned Transport Receipts
which is 1 unit in the first period.

Total In Transit Receipts

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3 4 5 6
0
0
0
3

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:

Lead Time: 3

Transport Receipts

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

2014 SAP AG. All rights reserved.

Figure 4: Step 1: Computation of periods 1 3

Based on the Receipts and the Supply of 1 unit it is possible to compute the
Projected Stock of period 1. This allows to continue with period 2 for which we
receive a Minimum Transport of 5 units so that again no additional Transport
Receipts are needed resulting in a Transport Receipts of 5. The Projected Stock at
the end of period 2 is 3 units which allows us to continue with period 3. Figure 4
shows the results of the first three periods which are all in the Lead Time Horizon.
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This means that we do not have to consider these three periods on the right side, i.e.
within the downstream key figures. (Transports arriving in these first three periods
have to be started before the first period of the current planning horizon, i.e. before
period 1.) This is different as of period 4. First we start again to match the Minimum
Transport Receipts of 7 units against the Net Demand of 4 units. As a result, no
S&OP-planned Transport Receipts are needed so that the overall Transport Receipts
are 7 units. The Projected Stock at DC 1 is 3 units.

Total In Transit Receipts

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3
0
0
0
3

4 5 6
3
4
7
4

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:
0

Lead Time: 3

Transport Receipts

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

2014 SAP AG. All rights reserved.

Figure 5: Step 2: Computation of period 4

The most interesting thing happening in period 4 is the merge of the S&OP-planned
Transport Receipts of 0 units in period 4 into the corresponding downstream key
figure SOP-planned Transport Supply which are both internal key figures to store a
temporary result. As these transports follow the defined lead time (which is 3 periods
in this example) a transport arriving in period 4 (left side) has to leave DC2 (right
side) three periods before, i.e. in period 1 which is visualized in Figure 5. After this
copy it is possible to compute the Transport Supply of period 1 which is zero.

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As shown in Figure 6 we now continue with period 5. As explained for all previous
periods we first match the Minimum Transport Receipts against the Net Demand. As
in period 5 there are no Minimum Transport Receipts, S&OP has to plan additionally
2 units to satisfy the Net Demand of 2 units. This Transport Receipts is shifted by the
3 periods lead time into the second period of key figure S&OP-planned Transport
Supply see Figure 6.

Total In Transit Receipts

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3
0
0
0
3

4
3
4
7
4

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P
5 6
0
2
2
5

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:
0 3

Lead Time: 3

Transport Receipts

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

2014 SAP AG. All rights reserved.

Figure 6: Step 3: Computation of period 5

This means that the system has to provide a Transport Supply in period 2 from DC 2
and the Minimum Transport Supply of 1 unit, so together the Supply of DC 2 in the
second period is 3 units. .

Following the same procedure we continue with period 6. As a result the outcome is
that on top of the Minimum Transport Receipts we need additionally 3 units to fulfill
the Net Demand of 6 units in period 6. These additional 3 units are lead time shifted
to the internal key figure S&OP-planned Transport Supply into period 3. Together
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with the given Minimum Transport Supply of 7 units, DC 2 has to supply in total 10
units as shown in Figure 7.

Total In Transit Receipts

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3
0
0
0
3

4
3
4
7
4

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P
5
0
2
2
5

6
0
6
6
6

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:
0 3

Lead Time: 3

10

Transport Receipts

3 10

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

2014 SAP AG. All rights reserved.

Figure 7: Step 4: Computation of period 6

From the perspective of DC 2 the periods 4 to 6 are quite simple to compute. The
SCM Planning Operator takes over the given values of Minimum Transport Supply
plus the S&OP-planned Transport Supply into key figure Transport Supply. The
values of this key figure are then copied into key figure Supply which is related to the
location product DC 2 / P.
To finalize the result, the system takes over the computed Transport Receipts into
the Outbound Location Demand and accordingly the Transport Supply into the
Dependent Location Demands. For the final result see Figure 3.

We now (finally) explain how to compute the overall In Transit Receipts (and In
Transit Supply). Figure 8 shows the completed supply plan of the previous example,
which is the same as shown in Figure 3, but enhanced by the two In Transit Key
Figures and the Initial In Transit. We assume to have an Initial In Transit of 5 units,
meaning that at the beginning of period 1 there are already 5 units on their way from
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DC 2 to DC 1. It is important to realize that key figures Transport Receipts and

Transport Supply contain all quantities given by the S&OP planned transports and
the Minimum Transports. For that reason it is possible to compute the in transit
quantities on top of these two key figures. In addition, as explained in section 2.2,
due to the Minimum Transports we need the Initial In Transit quantity, which is
assumed to be 5 units in this example see Figure 8.

Computation of Total In Transit Receipts & Supply

Dep. Dem.: 1
Proj. Stock: 0
Net Dem.: 1
Receipts: 1
Supply:
1

2
3
2
5
2

3
0
0
0
3

4
3
4
7
4

Dep. Loc. Dem.

Out. Loc. Dem.

DC 1 / Product P

1
5
0
2
2
5

6
0
6
6
6

10

DC 2 / Product P
Dep. Dem.:
Proj. Stock:
Net Dem.:
Receipts:
Supply:

Lead Time: 3

0
0
0
0
0

3
0
3
3
3

10
0
10
10
10

4
0
4
4
4

1
0
1
1
1

2
0
2
2
2

Transport Receipts

3 10

Transport Supply

S&OP-planned Transp. Receipts

S&OP-planned Transport Supply

Min Transport Receipts

Min Transport Supply

Initial In Transit

5
2

12

12

In Transit Supply

In Transit Receipts

2014 SAP AG. All rights reserved.

Figure 8: Computation of the two In Transit Key Figures

To compute the In Transit Receipts of period 1 we start with the Initial In Transit, add
the Transport Supply of period 1 and subtract the Transport Receipts of period 1, i.e.:
In Transit Receipts[1] = Initial In Transit + Trans. Supply[1] Trans. Receipts[1]
The explanation for this procedure is that the Transport Supplies are leaving DC 2,
i.e. are moved out from a location inventory to an in transit inventory (on a ship or a
on a truck) and therefore increase the in transit quantity. All Transport Receipts of a
period arrive at a location and therefore reduce the in transit quantities.
For the example in Figure 8, this means:
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In Transit Receipts[1] = 5 + 0 1 = 4
The In Transit Receipts for all other periods are derived by:
In Transit Receipts[t] = In Transit Receipts[t-1] +
Trans. Supply[t] Trans. Receipts[t]

for t = 2, , T

The In Transit Receipts of the second period of the example in Figure 8 this is:
In Transit Receipts[2] = 4 + 3 5 = 2

Note: Depending on the values the user has entered into key figures Initial In Transit
and the Minimum Transport Key Figures it can happen that the resulting In Transit
key figure contains negative values which is, of course, somehow inconsistent. If this
the case S&OP will compute nevertheless the In Transit as explained above and then
return negative values in key figure In Transit, accompanied with a warning message
containing the information at which location product this issue occurred, so that a
user should be able to resolve it.

2.4 In Transit Supply

Technical name: INTRANSITDS, key: Product, Ship-To Location, Location
This Downstream Key Figure corresponds to the Upstream Key Figure In Transit
Receipts (see section 2.2). The only difference to INTRANSIT is the key structure
the numbers are the same. More information about the concept of Downstream Key
Figures is available in the specification document Key Figures of the SCM Planning
Operator, section 9.

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