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Life Cycle Planning in SAP APO DP. Part-1

Life Cycle Planning in SAP APO DP

Business Process Procedure On Lifecycle Planning
Setup Lifecycle Planning – like Profile setup / Assignment Part -1

Life Cycle of any product consists of different phases i.e., Launch, Growth, Maturity, Decline, and Death. In SAP SCM, – APO Demand Planning, we can use phase in and phase out profiles to represent the launch, growth, decline and death phases.

With the use of like profiles, demand forecast can be created for a new product using historical data of a product or products whose demand behavior is similar to the new product.

Like profiles, can also be used for products with short lifecycles or for products with insufficient historical data.

Lifecycle Planning in SAP APO consists of two functions,

Like modeling
Phase In/Out modeling.

Each of these functions is available for forecasting both at detail level and aggregate level.

Like Modeling

Like Modeling, is done by creating a “Like Profile” for forecasting new product by utilizing the historical data of old products with similar sales behavior. It is ideal to use Like profiles for new products and products with short life cycle.

Like cycle planning can be set for specific characteristics. We need to specify the characteristics to the planning area. The following restriction applies

We can work with maximum of 6 characteristics
We cannot use Compound Characteristics
We cannot use Characteristics Based Forecasting (CBF) Characteristics.

Creating Like Profile

Transaction code :  /SAPAPO/MSDP_FCST1
Path Advanced Planning and Optimization -> Demand Planning -> Environment -> Lifecycle Planning.

Step 1– When you execute the Transaction /SAPAPO/MSDP_FCST1. You will reach the Lifecycle Planning Screen.

Here, under the “Setting for Lifecycle Planning”

 You need to select the “Basic Settings” Radio button.

 Select the Planning Area – ZDE_PA and click on Execute. To do the basic setting for the Lifecycle

Step 2 – Define Basic Setting for LifeCycle.

We can work with Maximum of 6 Characteristics. Here I have entered Product Characteristic ZCDEPRODU for which like profiles needs to be maintained.
Click on Adopt.

After Clicking the Adopt button, you will reach the Main Lifecycle planning screen.

Step 3 – Define Like Profiles.

After Clicking on “Like Profile”, you will reach the “Define like Profile” Screen

1. Here you need to select the characteristic on which you want to create a like profile. But in the Basic settings we had maintained only Product (ZCDEPRODU) so you can get here Product characteristic only.

2. Define a Like Profile. Under like profile field. Eg ZDELP001 and give the description.

3. Under the like profile Definition  Ref.Values – Give the reference product, (Reference product – you are using this product profile as the reference to the new product.)

4. Click on Save button, to save the profile. All saved profile are displayed in the next table.

5. Click on Adopt Values. After clicking this button, you will reach the main screen. With this you have completed the creation of like profile.

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