GATP - An Adaptive Feedback Supply Chain Control System potential: Part 1
Applies to:
SAP SCM – APO Global Available to Promise Functionality
Summary
This white paper is intended for supply chain planners, inventory managers, demand / order fulfillment teams and supply chain focused interest groups. It explains how the SAP SCM-GATP tool acts as a corrective tool at the time of execution looking at multiple locations or invoking production when a supply and demand disparity happens despite the best attempt from planners to generate good forecast and supply plan with tools like DP & SNP.
Author: Ashish Sawhney
Company:  Value Consulting
Created on: 21 July 2007
Author Bio
Ashish Sawhney is a Senior Supply Chain Adviser for SAP SCM -APO tool for Value Consulting’s Center of Excellence with more than 10 plus years Consulting / researching in the field of Supply Chain Planning / Execution / Strategy with Solutions like SAP APO, I2, Adexa  and Manugistics to name a few.
For any questions please feel free to contact ashish@valconusa.
Table of Contents
Applies to: (1)
Summary (1)
Author Bio (1)
Supply Chain Adaptive Control Generic Scenarios (3)
Business Scenario (4)
Geographic View of Supply Chain Model: (4)
adaptive
Logical View of Supply Chain Model: (5)
Disclaimer and Liability Notice (13)
Supply Chain Adaptive Control Generic Scenarios
In the real world of business with highly sophisticated customer driven supply chain systems, the planning system / demand plans can still go astray due to numerous reasons ranging from inconsistent historical data, wrong guesstimate, management overrides, wide of the mark statistical forecast, customer forecast override – Sales or Production department overrides to cite a few. This may cause chaos due to unplanned demand in the supply chain putting pressure of shorting the orders and/ or loosing a potential business opportunity / Customer.
A potential fall out could be any one of the following
Supply and demand planning disparity by product location:  There could be incorrect quantity being planned for any of the following reasons:
o Planned location disparity: For a particular product at a plant or distribution center where the demand is not high was planned with higher quantity and/or less quantity planned for a
plant / distribution center with high demand.
o Planned product disparity: A product with less demand is being planned instead of a product with high demand
o Planned product location disparity: The planning disparity might happen as a combination of the above two.
Component and capacity unavailability: Besides the above reason, a potential fallout for manufacturing organizations planning finished products with high lead times (For examples,
companies with global supply chain procuring parts from China but Selling in North America or
Europe). Also if the critical customer requested product is out of stock and if one needs to replenish it looking at the capacities and production constraints and which planning did not account for any such exceptions, at the same time minimizing interactions with production planner to look into available
capacities, GATP works as a great tool to invoke production planning without changing the results of Planning team.
Planned time to customer disparity while planning supply chai n: The planners typically tend to not involve transportation and shipment scheduling lead times in their date forecast
To counter the above problems, many companies built internal customized algorithms and end up writing customized ABAP programs to perform location substitution and product substitution or capacity and component checks. The solution of customized Z Programs involves following drawbacks:  High cost of ownership of these customized programs.
Impact of upgrades resulting in more testing and SAP support of these in new releases.
Potentially lagging behind what might be available with more mature standard functionality.
Business Scenario
With Solution using GATP using Rules Based ATP to correct for Unplanned Demand:
The Business Scenario described here involves 3 distribution centers 1004, 1013 and 1020 for 2 products 7001603-838 & 7001603-668. The SNP planner knows typically what needs to be planned at 1004 which is the main Plant / DC serving the customer for both products 7001603-838 & 7001603-668.
Geographic View of Supply Chain Model:
Main Plant serving customer 1000010424
Summary of Demand & Supply Situation in SNP Planning Book – The Total row shows total of all Total Demand, Total Receipt and Stock on Hand at start and later by each time bucket.

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