Difference between SNP heuristics,Optimizer and CTM

Question

Dear Friends,
can any one explain me what are the basic difference in SNP planning methods
1) SNP heuristics
2)Optimzer
3)CTM
when should we use these  method in SNP , is all the methods are used in SNP impelemtation ?
just give me some idea about it
Thanks & Regards
Raj

Answer 1

Hi Rajkumar,
                  Please find the difference among three
Comparison of the Planning Methods
you use optimization-based planning or CTM planning if one of the following conditions applies to you:
·        Your business environment is subject to strict constraints (for example, you must take into account production capacities, transportation capacities, storage capacities, and/or handling capacities)
·        You have alternative production locations and sources of supply (locations, production process models, and external procurement relationships)
·        You can decide between early production and late production
·        You share resources, meaning that multiple products are produced simultaneously on the one resource
We recommend that you use heuristic-based planning or CTM planning if any of the following conditions apply:
·        You wish to plan on an infinite basis (meaning that you do not wish to consider capacities) for the medium to long-term horizon (heuristic).
·        You wish to take into account predefined quota arrangements; for sources of supply, for instance (heuristic or CTM).
·        You wish to plan or fulfill demands on the basis of priorities (CTM).
Optimization-Based Planning :
http://help.sap.com/saphelp_scm2007/helpdata/en/09/707b37db6bcd66e10000009b38f889/content.htm
The SNP optimizer offers cost-based planning. This means that it searches through all feasible plans in an attempt to find the most cost-effective (in terms of total costs). Total costs refers to the following:
·        Production, procurement, storage, and transportation costs
·        Costs for increasing the production capacity, storage capacity, transportation capacity, and handling capacity
·        Costs for violating (falling below) the safety stock level
·        Costs for late delivery
·        Stockout costs
Heuristic-Based Planning
http://help.sap.com/saphelp_scm2007/helpdata/en/a1/b60b4b2fc211d3b6270000e82de178/content.htm
The heuristic is used as part of a repair-based planning process consisting of the heuristic, capacity leveling, and deployment. The heuristic run processes each planning location sequentially and determines sourcing requirements. The heuristic processing groups all demands for a given product at a location into one demand for the bucket. The heuristic run determines valid sources of supply and corresponding quantity based on pre-defined percentages for each source of supply (quota arrangements), or procurement priorities for transportation lanes and production process models (PPMs) or production data structures (PDS). The demands are then passed through the supply chain to calculate a plan. However, this plan is not necessarily feasible. The planner can then use capacity leveling to adjust the plan and formulate a feasible plan.
Capable-to-Match (CTM)
http://help.sap.com/saphelp_scm2007/helpdata/en/c4/986c39b768ca2fe10000000a114084/frameset.htm
With this function, you can execute a multi-level, finite planning of the demands in your supply chain. Unlike the Supply Network Planning (SNP) optimizer that executes cost-based planning, CTM planning uses a heuristic procedure. In other words, CTM does not optimize the costs. Instead, you can use priorities, for example, to influence the sequence of demands and the selection of the procurement alternatives. CTM planning does not consider the individual production and distribution levels one after the other, such as the classic MRP run, but considers them at the same time. This guarantees that CTM planning generates a plan that can be executed on schedule.
Hope these details will resolve your queries
Regards,
Santosh Kumar Mishra