Supply Chain Management

The Frutado Case Study - an interactive lesson which introduces students to the world of advanced planning systems


The increasingly globalized marketplace and the growth of global networked business activities have made outstanding supply chain planning a decisive core competence. Advanced planning systems (APS) linked to traditional Enterprise Resource Planning Systems (ERP) can be utilized to realize this goal by optimizing the different activities involved in complex supply chains.

In this context, the “Frutado Case Study” attempts to close the gap between practical relevance and the limited presence of this topic at university. The case study was designed by the following department chairs and implemented in SAP APO:

  • Prof. Dr. B. Fleischmann, Department of Production and Logistics, University of Augsburg
  • Prof. Dr. H.-O. Günther, Department of Production Management, Technische Universität Berlin
  • Prof. Dr. M. Grunow, Department of Production and Supply Chain Management, Technische Universität München (until September 2010 at the Department of Management Engineering, Technical University of Denmark)
  • Prof. Dr. H. Meyr, Department of Supply Chain Management, University of Hohenheim (until April 2011 at the Department for Production and Supply Chain Management, Technische Universität Darmstadt)
  • Prof. Dr. H. Stadtler, Institute for Logistics and Transport, University of Hamburg.

The simulated enterprise Frutado AG (Inc.) is a manufacturing firm which produces fruit juices and iced teas. The 19 different drinks are subject to either a constant demand or one which varies depending on the season. The firm has 3 locations, each with its own production facility and distribution center. Each production facility, in turn, has 2 production lines which can manufacture a part of the assortment of drinks. The distribution centers, in contrast, stock the entire assortment of products and can each supply 20 out of a total of 60 customers. This represents a classical make-to-stock strategy.

By implementing this simulated enterprise in SAP APO, it was possible to create an independent, browser-based tutorial, which illustrates the use of APS in a self-contained environment without the need for a real SAP system.

Within the tutorial, a basis stream was created, which demonstrates the basic processes involved in various planning activities. In addition, the tutorial contains an in-depth stream, which provides insights into the functionality of APS.

The Frutado Case Study contains the following planning activities:

  • the creation of short and mid-term sales forecasts  
  • mid-term master planning    
  • short-term production planning and operation sequencing   
  • distribution planning   
  • transport planning   
  • available-to-promise/capable-to-promise

SAP AG has incorporated the contents of the tutorial into its University Alliance Program and provides these free of charge to members of the University Competence Centers (HCC). A course book which supplements the interactive exercises and provides additional theory is scheduled to be published in autumn 2011.

additional source: OR News, Nr. 38, March 2010