Definition

Advanced Planner and Optimizer (APO)

Advanced Planner and Optimizer (APO) is a set of software applications from the German-based software company SAP for supply chain management. According to SAP literature, Advanced Planner and Optimizer is designed to help a company improve production planning, pricing, scheduling, and product shipping. APO works by getting real-time updates from retailers about customer demand. The updates are used to create APO "demand triggers" that take into account many complex variables, such as the delivery schedule of raw materials and productions cycles, to forecast the right amount of product mix the company will need to meet future customer demands. APO can be integrated with the SAP R/3 and legacy enterprise resource planning (ERP) systems.

APO consists of eight application levels: network design, demand planning, supply network planning, production planning and detailed scheduling, global availability, transportation planning and vehicle scheduling, and supply chain collaboration.

This was last updated in September 2005
Posted by: Margaret Rouse

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