An Advanced Planning System (APS) is a software system for planning, monitoring and optimizing supply chains. These systems are used for simulation, early detection and bottleneck control of customer order processing across the entire supply chain. Sophisticated APS serve a realistic mapping of the supply chain, preferably in real time.

APS systems complete the ERP functionalities of production planning and control and can normally be integrated with them without any problems. Cooperation with Manufacturing Execution System (MES) solutions is also possible, depending on the degree of integration.

APS systems can be divided into three different application levels that build on each other in terms of time and logic. APS can also cover only partial aspects:

• At a strategic level, the so-called configuration level, supply chain design options are modeled and evaluated for costs and performance. The focus here is on production and warehouse locations, capacities and associated processes.

• At the tactical level, rough planning is carried out. This is based on medium-term demand planning and sales forecasts for procurement, production and distribution. The aim is to synchronize production and transportation planning across the supply chain, taking into account capacity and schedule-related dependencies.

• At the operational level, the so-called execution level, the necessary detailed planning is carried out in order to coordinate quantities and capacities at short notice. This is also where advanced planning and scheduling systems are located, which use algorithms to determine an optimum in detailed planning while taking restrictions into account. At the operational level, systems are also to be found that consider various planning processes, such as sales, capacity, quantity and schedule planning, as well as procurement, distribution and transport planning. The planning is based on simulations of different alternatives, which are compared and evaluated.

The fields of application are in the production and logistics industries. They are particularly effective in companies with high vertical integration and in global supply chains. Newer Advance Planning Systems are based on cloud solutions that make it possible to process data from numerous systems with high computing power. Mobility is also supported via the cloud. It is important for the efficient use of an APS to network all components of the supply chain with each other and to configure the algorithms according to optimization variables to be defined. Basically, the introduction or use of APS requires a revision of all planning levels in the company towards integrated supply chain planning.

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