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Component: SCM-APO-SNP
Component Name: Supply Network Planning (SNP)
Description: Planning method in , in which the system plans demand over the entire supply chain network cross-location planning and creates a medium-term production and distribution plan. Cost is the crucial aspect within this planning procedure costs for procurement, production, storage, and transportation, for example. The SNP optimizer searches through all the "feasible" plans in an attempt to find the most cost-efficient in terms of the total costs.
Term: SNP optimizer
Component: SCM-APO-SNP Supply Network Planning (SNP)
Definition: The SNP optimizer is a powerful planning engine within SAP APO's Supply Network Planning module that uses mathematical optimization techniques to generate the most cost-effective and feasible supply plans. It considers constraints such as capacities, lead times, and demand to recommend optimal production, procurement, and distribution decisions across the supply network.
How It’s Used: In real SAP projects, the SNP optimizer is used to create detailed supply plans that balance supply and demand while minimizing costs like production, transportation, and inventory holding. Planners run the optimizer to evaluate different scenarios, optimize resource utilization, and ensure service levels are met. For example, it helps determine the best production locations, quantities, and shipment schedules to fulfill customer demand efficiently.
Important Configuration:
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