Simulation at APE level

The simulation for an Aggregate Planning Entity (APE) runs separately for each child Planning Entity (PE) level. Simulation calculations are performed only at the child PE level, and the application aggregates the results and display at the APE.

The simulation process for an APE consists of these steps:

• The application validates APE inputs and verifies that prerequisite data is available for use in the participating child PEs.
• The APE passes policy settings and simulation parameters to applicable unlocked child PEs.
• Each child PE runs a separate simulation based on the policy settings received from the APE.
• Each child PE generates a separate simulation outputs.
• The application aggregates the simulation results from the child PEs and displays the applicable results at the APE.

The aggregation and disaggregation method depends on the measure:

• Some measures use the sum of the child PE values, while others use the average of the child PE values.
• Aggregation calculations always include the locked and unlocked child PEs.
• Disaggregation and policy propagation apply only to unlocked child PEs.

When you modify an input value at the APE:

• Updates are applied only to applicable unlocked child PEs.
• Locked child PEs retain the existing values.
• Push measures apply the same value to all unlocked child PEs.
• Prorated measures distribute the specified value across unlocked child PEs based on the original values.
• If unlocked child PEs do not contain existing values, the value is distributed evenly across unlocked child PEs.

Input measures

This table lists the aggregation and disaggregation methods for commonly used simulation inputs:

Measure	Aggregation method	Disaggregation method
Policy		Push the policy selected to unlocked base PEs.
Service level target (SSLI)	Average of all child PE values	Push the specified value to unlocked base PEs.
Safety factor (SNSF)	Average of all child PE values	Push the specified value to unlocked base PEs.
Number of days (DC)	Average of all child PE values	Push the specified value to unlocked base PEs.
Safety stock quantity (FQ)	Sum of all child PE values	Prorates the specified value across unlocked base PEs.
Contingency stock in units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.
Maximum safety stock units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.
Minimum safety stock units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.
Annual forecast to use (dropdown)	N/A	Push the specified type to unlocked base PEs.
Annual forecast to use values	Sum of all child PE values	Prorate the specified value across unlocked base PEs. – Only applicable where Annual Forecast to use is set to Manual.
Standard deviation to use (drop-down)	N/A	Push the specified type to unlocked base PEs.
Standard deviation values	Sum of all child PE values	Prorate the specified value across unlocked base PEs. – Only applicable where Standard Deviation to use is set to Manual.
Replenishment method to use (drop-down)	N/A	Push the specified type to unlocked base PEs.
Replenishment method to use values (Preferred lot quantity/Days between orders)	Average of all child PE values	Push the specified value to unlocked base PEs.
Leadtime days	Average of all child PE values	Push the specified value to unlocked base PEs.
Standard cost	Average of all child PE values	Push the specified value to unlocked base PEs.
Contingency stock in days	Average of all child PE values	Push the specified value to unlocked base PEs.
Contingency stock in units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.
Maximum days cover	Average of all child PE values	Push the specified value to unlocked base PEs.
Maximum safety stock units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.
Minimum days cover	Average of all child PE values	Push the specified value to unlocked base PEs.
Minimum safety stock units	Sum of all child PE values	Prorate the specified value across unlocked base PEs.

Note: Where proration of values occurs, base value at base unlocked PE is calculated as:

Base unlocked PE = (APE entered value – sum of all locked PE values) x (Original Base PE value / Sum of unlocked original PE values)

Output measures

APE values are not pushed or prorated to PE values. These values are generated by the simulation at the PE level.

APE values are calculated from the sum of all PEs for these measures:

• Annual forecast in use
• Annual forecast in use value
• Daily forecast
• Estimated annual shortages
• Forecast level
• Forecast over days between orders
• Growth
• Inventory investment
• Number of replenishments per year
• Planned safety stock quantity
• Re-order point
• Standard deviation in use
• Theoretical stock on hand

APE values are calculated from the average from all PEs for these measures:

• Leadtime days
• Estimated days of inventory
• Number of positive periods in first year
• Planned days between orders
• Planned days cover
• Planned leadtime days
• Planned preferred lot quantity
• Planned safety factor
• Planned service level
• Short forecast over days between orders
• Standard deviation over leadtime
• Turns

Aggregated results displayed at the APE include data from the locked and unlocked child PEs, although updates and policy propagation impact only unlocked child PEs.