Aggregated constraints are a useful feature in SAP IBP when you would like to control the supply and capacity planning not on a detail level but on an aggregated level.

As an example: you have four production lines in your company which can manufacture the same output product but with different throughput rates. Your main restriction is the number of skilled employees available per day or shift to operate the machines. Of cause, you may invest some time in a daily update of the capacity supply of each resource, measured in production output. Instead, you can define a maximum output as an aggregated constraint for a group of resources or a product family. The same applies for minimum outputs in case, minimum lot sizes are not an option.

Aggregated constraints will only work with the Time-series-based supply planning optimizer which is included into the SAP IBP Supply & Response module. Constraints can be modelled for the following master data types:

  • Product
  • Customer
  • Location
  • Resource

Usually, aggregated constraints are hard constraints for the optimizer, meaning they can not be violated, but there is an option to turn the minimum aggregated constraints to so-called pseudo-hard constraints in the parameters of the S&OP Optimizer profile:

S&OP Operator Profile, Optimization

The reason for this is that if the overall transportation or production demand may not even reach the quantity defined in the aggregated constraint, the optimizer would deliver no solution if defined as hard constraint.

It is important to stress that values entered for an aggregated constraint key figure are stored only at the aggregate level (that is, the planning level where you entered them in the Excel planning view), and there is no disaggregation. This means that aggregated constraint key figures can be viewed in the Excel planning view only at the level at which you stored them:

Disaggregation settings in Aggregated Constraint key figure

Here is the list of aggregated constraint key figures:

Aggregated Constraint Input Key Figures

Key figureBase planning levelPurpose
Minimum Aggregate Customer Receipts (MINAGGDEMAND)Period – Product – Location – CustomerYou can use this input key figure to specify the minimum constrained demand in a defined period for any combination of product, location, and customer. For example, you can specify a minimum constrained demand for the combination of product family and customer region. The optimizer ships at least the specified amount of the corresponding products to these customers.
Maximum Aggregate Customer Receipts (MAXAGGDEMAND)Period – Product – Location – CustomerYou can use this input key figure to specify the maximum constrained demand in a defined period for any combination of product, location, and customer. For example, you can specify a maximum constrained demand for the combination of product family and customer region. The optimizer ships at most the specified amount of the corresponding products to these customers
Minimum Aggregate Production Receipts (MINAGGPRODUCTION)Period – Product – Location – Production Source of SupplyYou can use this input key figure to specify the minimum amount in a defined period for any combination of product, location, and production source of supply. For example, you can specify the minimum production amount for several products of a specific color at defined plants. If you specify a minimum amount of 50, at least 50 such products are produced using the defined production sources of supply
Maximum Aggregate Production Receipts (MAXAGGPRODUCTION)Period – Product – Location – Production Source of SupplyYou can use this input key figure to specify a maximum amount in a defined period for any combination of product, location, and production source of supply. For example, you can specify the maximum production amount for several products of a specific color at defined plants. If you specify a maximum amount of 100, at most 100 such products are produced using the defined production sources of supply.
Minimum Aggregate Transport Receipts (MINAGGTRANSPORT)Period – Product – Location – Ship-From LocationYou can use this input key figure to specify the minimum quantity to be transported in a defined period for any combination of product, location, and ship-from location. For example, you can specify the minimum quantity of a product family to be transported from a group of ship-from locations to another group of locations.
Maximum Aggregate Transport Receipts (MAXAGGTRANSPORT)Period – Product – Location – Ship-From LocationYou can use this input key figure to specify the maximum quantity to be transported in a defined period for any combination of product, location, and ship-from location. For example, you can specify the maximum quantity of a product family to be transported from a group of ship-from locations to another group of locations
Minimum Aggregate Inventory (MINAGGINVENTORY)Period – Product – LocationYou can use this input key figure to specify the minimum amount in a defined period for any combination of product and location. For example, you can specify the minimum inventory level for a specific product at defined distribution centers. If you specify a minimum inventory level of 100, at least a total amount of 100 is held on stock at these distribution centers for this product
Maximum Aggregate Inventory (MAXAGGINVENTORY)Period – Product – LocationYou can use this input key figure to specify the maximum amount in a defined period for any combination of product and location. For example, you can specify the maximum inventory level for a specific product at defined distribution centers. If you specify a maximum inventory level of 200, at most a total amount of 200 is held on stock at these distribution centers for this product

Aggregated Constraint Downstream Key Figures

Key figureBase planning levelPurpose
Minimum Aggregate Customer Supply (MINAGGDEMANDDS)Period – Product – Location – CustomerThis key figure corresponds to the upstream key figure Minimum Aggregate Customer Receipts (MINAGGDEMAND).
Maximum Aggregate Customer Supply (MAXAGGDEMANDDS)Period – Product – Location – CustomerThis key figure corresponds to the upstream key figure Maximum Aggregate Customer Receipts (MAXAGGDEMAND).
Minimum Aggregate Transport Supply (MINAGGTRANSPORTDS)Period – Product – Ship-To Location – LocationThis key figure corresponds to the upstream key figure Minimum Aggregate Transport Receipts (MINAGGTRANSPORT).
Maximum Aggregate Transport Supply (MAXAGGTRANSPORTDS)Period – Product – Ship-To Location – LocationThis key figure corresponds to the upstream key figure Maximum Aggregate Transport Receipts (MAXAGGTRANSPORT).

For setting up the Aggregated constraint key figures there are some rules to be followed:

  • You can include attributes only from the base planning level of the key figure to which the aggregated constraint key figure corresponds. Of cause, you should not include all root attributes as it then would be no aggregation anymore.
  • To the base planning level of the aggregated constraint key figure you have to assign one ore more root attributes which are non-root attributes of the base planning level of the corresponding key figure.
  • The time root attribute needs to match for both base planning levels, aggregated constraint key figure and corresponding key figure.

Demo Example for Aggregated Customer Receipt Constraints

This example is from the SAP IBP Rapid Deployment Solution library and illustrates how you can use Aggregated Constraints to allocate pre-defined, restricted quantities to e.g. a customer cluster. The scenario may apply in markets where the demand exceeds the supply and you want to prevent a “first come, first serve” distribution policy.

For this scenario we are using the upstream key figure MAXAGGDEMAND (Maximum Aggregate Customer Receipts), which has base planning level CALWKPRODLOCCUSTAGG assigned (Period – Product – Location – Customer)

We define a maximum weekly quantity of 1.000 on the aggregated level Customer Region and Product Family:

After running the optimizer you will notice a corresponding allocation of customer receipts if you review the total for the product family and the customer region. The gap in CW 27 for products IBP-110 and IBP-120 are due to capacity shortages:

Now, we would like to test this with an aggregated restriction on production output. For this we will use the key figure MAXAGGPRODUCTION („Maximum Aggregate Production Receipts“), which is defined on the planning level Period – Product – Location – Production Source of Supply.

Demo Example for Aggregated Production Constraints

For a restriction in the aggregated production amount we will use key figure MAXAGGPRODUCTION accordingly. The key figure is delivered in the SAP business content with a planning level containing a bunch of root attributes

We therefore replaced the planning level with a level that uses Product Group, Location ID and Source Type only as root attributes.

After running the optimizer algorithm the Production Receipt quantities are cut accordingly to the previously defined aggregation quantity:

In some cases the Maximum Aggregated Production Receipt quantity is below the one in key figure Production Receipts, which has been generated previously by a constrained optimization run without aggregation restrictions. How the shortage quantities are distributed among the single products can be managed via the Production Cost Rate.

Summary

Aggregated Constraints are a very useful and transparent tool for defining planning restrictions on an aggregated level. The aggregated constraints key figures are predefined from SAP, but you have the flexibility to assign alternative planning levels to the key figures to custom them to your needs.