Phase-Out Control for End Products 

Note: As of SAP APO 4.0, this function has been replaced by the product interchangeability function. This function is still available but we recommend that you use the new function. For more information, see Product Interchangeability in Supply Network Planning.

Purpose

You use this process to model the discontinuation of end products to set how one product replaces another. You can define introductory periods for specific products and allow an overlap between the two products to allow stocks of the product to be discontinued to be reduced. Both products are compounded within one product group.

Prerequisites

·        You have created a location product hierarchy in the master data.

·        You have created the demand plan on the basis of this product group or location product group (that is, the forecast has been created at product group level).

Process Flow

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       1.      In the Product Split function (APO Easy Access menu → Demand Planning → Environment → Product Split), you set the SNP DISAGG indicator and specify the product to be discontinued, the product you want to be its replacement, and when you want this to happen. In this transaction, you also define a period for reducing stock of the old product, with the result that the system only takes the new product into account when there is no more stock of the old product. Once this period has come to an end, the system only takes into account stock of the new product.

For more information about maintaining product discontinuation data with the Product Split function, see the F1 help for the SNP DISAGG field.

       2.      In interactive Demand Planning (APO Easy Access menu → Demand Planning → Planning → Interactive Demand Planning), you run a product group heuristic based on planning book 9ASNPHIER (and data view SNPHIER).

       3.      The system aggregates the stock of individual products to product group level and creates a replenishment plan using forecasts, stocks, and possible safety stocks, and taking into account the latest introduction date (Supply Date) that was specified in the Product Split.

       4.      You then run the time-based disaggregation.

       5.      The system disaggregates the product group receipt elements (shown in the upper table of the planning table) over the individual products as demands (shown in the lower table), taking into account the earliest introduction date for the replacement product that is specified in the Product Split (from date).