Capacity levelling profile in SNP

1-Capacity Leveling Profile

You can control capacity leveling using various parameters. You define these parameters in a
profile that you specify when running capacity leveling in interactive planning or in the
background. However, you can also specify the parameters manually or overwrite individual
profile parameters before each capacity leveling run. You define the capacity leveling profile
in Customizing for SNP under Profiles Define SNP Capacity Leveling Profiles or in
theSAP Easy Access screen underSupply Network Planning Environment Current
Settings Profiles Define SNP Capacity Leveling Profiles.
You use the profile to define the following specific parameters:
The capacity leveling method (heuristic, optimizer, or BAdI)
The scheduling direction (forward, backward, or combined)
Order prioritization (that is, which orders you want capacity leveling to process first)
Handling of fixed orders and order fixing during capacity leveling
The maximum resource utilization
The maximum runtime for capacity leveling
For more information, see Capacity Leveling Profile.

1-1.0 Capacity Leveling Profile

Definition
Profile, with which you can specify parameters for controlling capacity leveling in Supply
Network Planning (SNP).Parameters include scheduling direction, leveling method, and
consideration of priorities. You can enter the profile when you run capacity leveling in the
background and in interactive planning.
Structure
Capacity Leveling Method
You can choose one of the following three leveling methods:
Heuristic: The heuristic processes the individual orders on a period basis. That means, when a
resource is overloaded, the system moves order quantities into subsequent or previous periods
depending on the direction of scheduling (forward or backward) until the desired maximum load for
the resource is reached. The total order quantities in the planning horizon are not changed. In contrast
to the optimizer, the heuristic does not always find optimal resource utilization results.
Optimizer: The optimizer considers the quantities per period; that is, not the individual orders. At the
start of processing, it deletes all existing orders that are not fixed (based on the setting) and then
creates new orders. As with the heuristic, the total order quantities in the planning horizon are not
changed. You can achieve a more even utilization of resources than you can using the heuristic.
Optimization-based capacity leveling uses the SNP optimizer to level resources. However, in contrast
to the SNP optimizer, the constraints and costs taken into account are defined automatically and
cannot be influenced by the user. The costs are only used to control capacity leveling. They have no
business significance.
BAdI: The Business Add-In /SAPAPO/SNP_CAP provides an interface that you can use to connect
your own method to capacity leveling. You can choose it here once you have activated the BAdI.
For more information, see Comparison of the Capacity Leveling Methods and Heuristic-Based
Capacity Leveling: Examples.
Scheduling Direction
You can define the direction in which the system executes capacity leveling; that is, the
direction in which the system moves order quantities from the order availability date when a
resource is overloaded.
The quantities are moved within the planning horizon. For the planning horizon, the system
uses either the planning buckets profile defined in the planning book or the planning buckets
profile you specified in the capacity leveling profile. You can also define the planning horizon
in interactive Supply Network Planning by selecting the start and end time period or by
entering afrom and to date in the function for running capacity leveling in the background.
The options available are:
Forward scheduling: The order quantities are moved from the availability date into the future.
Backward scheduling: The order quantities are moved from the availability date into the past (until
today's date at the latest, minus the defined horizons).
Combined forward and backward scheduling: The order quantities are moved both into the future
and the past.
Prioritizing Orders
You can specify which orders are to be considered first during heuristic-based capacity
leveling for a resource, meaning which orders will be the first to be moved to a different
period. For instance, during forward scheduling, the orders are moved to a later period first
and during backward scheduling, they are moved to an earlier period.
The options available are:
No priority: With this option, capacity leveling does not take into account any product or order
priorities. We recommend that you use this setting if you want to have optimal resource utilization.
Specifying a priority can have a negative effect on the capacity leveling results for optimal resource
utilization.
 Order size: With this option, capacity leveling takes into account orders according to their size. For
example, you can specify that during backward scheduling, large orders are moved to the earlier
periods first.
Product priority: With this option, capacity leveling takes into account the orders according to the
priority specified for products in the location product master. For example, you can specify that, during
forward scheduling, unimportant products are first moved to later periods.
You can also choose whether you want the priorities defined to be sorted in ascending or
descending order.
Ascending: When you choose the Product Priority option, the capacity leveling function moves
orders for highest priority products first (priority 1), then orders for second highest priority products
(priority 2), and so on. When you choose the Order Size option, capacity leveling moves the small
orders first.
Descending: When you choose the Product Priority option, the capacity leveling function moves
orders for lowest priority products first (priority 255 or 0), then orders for second highest priority
products (priority 254), and so on. When you choose the Order Size option, capacity leveling moves
the large orders first.
You define the product priority on the SNP 2 tab page of the location product master.
Optimization-based capacity leveling does not consider priorities.
Handling of fixed orders and order fixing during capacity leveling
You can specify that the system also levels fixed orders. This means that the system also
moves, changes, and deletes orders that were fixed in earlier planning runs. Note that this can
cause orders that were fixed for subsequent planning runs to be lost since, for example,
optimization-based capacity leveling first deletes all existing orders and then creates new
ones.
You can also specify that all orders for subsequent planning runs are to be fixed during
capacity leveling; that is, they can no longer be edited after leveling.
Maximum Load and Maximum Runtime
You can specify the maximum load for a resource (as a percentage) that you want the system
to take into account during capacity leveling. This value does not represent an absolute upper
bound. Since the total quantity of all the orders that exist in the planning horizon has to
remain the same, resource overloads might occur if the required capacity is not available.
You can also define the maximum runtime (in minutes) for capacity leveling. Once this
runtime has been exceeded, the system terminates planning. The following details apply to
the heuristicand optimizercapacity leveling methods:
 Heuristic: The heuristic processes the orders on a period basis. Once the runtime has been
exceeded, the system completely terminates processing for the current period. Solutions exist for the
periods that had already been processed.
Optimizer: Since the optimizer attempts to determine an optimal solution, it might already have found
a solution for the entire planning horizon; however, this solution might not represent the best possible
solution.
For the planning results found before termination, refer to the log.

2-Heuristic-Based Capacity Leveling:

Examples
This topic includes a few examples of heuristic-based capacity leveling. The following
parameters have been chosen for the examples:
Forward scheduling
Resource capacity level: 100%
Leveling method: Heuristic
No consideration of priorities

Example 1: Leveling the Capacity of a Production Resource

Step 1

An order for 24 pieces of product PROD1 is loading resource RES1. The product is available
on day 3. The production process model (PPM) activities are loading the resource on day 1,
2, and 3. The PPM has the following activities:
Activity 1: Duration = 1 day, resource = RES1, variable bucket consumption = 1h
Activity 2: Duration = 1 day, resource = RES1, variable bucket consumption = 2h
Activity 3: Duration = 1 day, resource = RES1, variable bucket consumption = 2h, output product =
PROD1, consumption = 1 PC
Step 2
Heuristic-based capacity leveling reduced the resource load on day 2 to 100% by reducing the
quantity of the original order by 50% and creating a new order for the remaining 50% of the
order quantity. Therefore, the system moved 50% of the original order into the future so its
activities were outside of the period concerned (day 2).
Step 3

To level the resource load on day 3, the system moved the new order from day 5 to day 6.
Example 2: Leveling the Capacity of a Transportation Resource
Step 1

An order with a quantity of 30 pieces is to be transferred to a different location. The time of

receipt at the destination location is day 3 at 12:00:00 h. The shipment duration is 24 h.
Therefore, the activity loads the resource from day 2, 12:00:00 h until day 3, 12:00:00 h.
The following data was defined for the transportation lane:
Resource: TRES1
Shipment duration: 24 h
Resource consumption 1 PC = 10 TO
Step 2
Heuristic-based capacity leveling leveled the resource load on day 2 by moving 10 pieces to
day 4.
Step 3

To level the resource load on day 3, the system moved another 10 pieces to day 5.

3-Comparison of the Capacity Leveling Methods

The following three maincapacity leveling methods are available in Supply Network
Planning (SNP):
Heuristic-based capacity leveling
Optimization-based capacity leveling
Your own method connected using the Business Add-In /SAPAPO/SNP_CAP
Which method you should choose depends on the individual circumstances. However, the
main features of the two methods provided by SAP are described below to assist you in
deciding which to use.
Heuristic-Based Capacity Leveling
Features
Heuristic-based capacity leveling starts from the start or end of the planning horizon
depending on the scheduling direction you chose (forward or backward), and compares the
resource capacity load in each period with the required load that you defined. If the system
detects a resource overload, it first selects all the activities or orders that are causing the
overload in the period concerned. The system then sorts these orders according to the priority
you specified and, in turn, moves orders or partial order quantities into later or earlier periods
until the maximum resource capacity level has been achieved. During forward scheduling, the
system moves the orders into the future so that the first activity that uses the resource to be
leveled starts after the period with the overload. During backward scheduling, the system
moves the orders into the past so that the final activity that uses the resource to be leveled is
completed before the start of the period with the overload.
When moving orders, the system takes into account the lot size values and rounding values
defined in master data (for information about constraints, see Consideration of Lot Sizes
and Other Master Data).
Performance
The runtime of heuristic-based capacity leveling depends on the number of orders to be
processed and the number of periods. Runtime is influenced by the following factors in
particular:
Number of products at the resource
Ratio of the lot size to the total quantity
Extent of the resource overload
Choice of periods (day, week, month)
Length of the planning horizon
See also
Heuristic-Based Capacity Leveling: Examples
Optimization-Based Capacity Leveling
Features
Optimization-based capacity leveling uses the SNP optimizer to clear resource overloads. The
system actions are as follows:
Der Optimierer ermittelt zunchst alle Produktionsprozessmodelle (...
...
1. The optimizer first determines all the production process models (PPMs) or production data
structures (PDS) and transportation lanes that use the resource to be leveled. It then determines all
the location products that belong to this master data plus the relevant master data and transaction
data for these products.
2. The optimizer generates a special optimization problem for capacity leveling based on the data
determined and the settings made by the user (scheduling direction, for instance). The optimizer
automatically sets the costs that are taken into account for this problem (costs for storage, delay, or
non-delivery for instance). It ignores any costs defined by the user. The costs are only used to control
capacity leveling. They have no business significance.
3. The optimizer solves the optimization problem generated. To do this, it first deletes all orders and
stock transfers for the resource to be leveled and then completely replans it. If alternative PPMs, PDS,
or transportation lanes are available, it bases its selection on procurement priority, if possible.
The optimizer makes sure that the resource to be leveled is not overloaded and takes care not to
move the planned orders and stock transfers too far beyond or prior to the original receipt due dates.
It prefers to create receipts that are too early (resulting in the creation of stock on hand) rather than
too late (resulting in the creation of shortfall quantities), if possible.
4. The optimizer creates new orders and stock transfers. It then also creates the orders and stock
transfers that it was initially unable to schedule due to the limited resource capacity. In backward
scheduling, it creates the orders and stock transfers for the original receipt due date; in forward
scheduling, it creates them in the last possible period of the planning horizon.
Performance
The following factors have a significant influence on the runtime of optimization-based
capacity leveling:
The length of the planning horizon and the number of periods within it
The number of alternative transportation lanes and PPMs or PDS
The number of products for which there are planned orders or stock transfers
The following factors do not have a significant influence on the runtime of optimization-
based capacity leveling:
The number of planned orders or stock transfers for a product within a period
Lot sizes
Extent of the resource overload

Comparison of the Methods

The features of the two methods are compared in the following table:
Heuristic Optimizer
Type of processing Order-based processing: Period-based and quantity-based
Only orders that are moved are changed processing:
(liveCache, R/3) All existing orders are deleted and
This is beneficial if there are many orders but recreated after capacity leveling
only a few that are overloading the resource
Resource capacity Not always optimal in configurations such as Almost always optimal
level that described in Heuristic-Based Capacity
Leveling: Examples
Changes to plan Few Completely new plan
Priority rule Order size No
observance Product priority
(sorting in ascending or descending order)
Overloads moved Always Only if there is sufficient capacity free in
during backward the target period
scheduling
Location of receipt The receipt has to be within the planning The receipt and issue have to be within
and issue horizon and outside of the SNP production the planning horizon and outside of the
horizon or stock transfer horizon. SNP production or stock transfer
 horizon.
Bucket offset Is ignored (see period factor) The bucket offset for PPMs or PDS is
always 1
The bucket offset for transportation
lanes is always 1
Period factor The period factor of the PPM/PDS or Is ignored (see bucket offset)
transportation lane is taken into account (if not
defined, the period factor of the location product
is taken into account)