What is Demand Plan in SAP AP-DP - SCM-OP Demand Planning?

SAP Term: Demand Plan

• Component: AP-DP

• Component Name: SCM-OP Demand Planning

• Description: A collection of quantitative forecasts of the product demands within a planning period. These forecasts are generated as required. For example, at product, brand, or customer group level.

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• Key Concepts: 
  Demand Plan is a component of SAP's Advanced Planning and Optimization (APO) module. It is used to forecast customer demand and create a plan for meeting that demand. The Demand Plan component of APO helps companies to accurately forecast customer demand, optimize inventory levels, and plan production and distribution activities. 
  
  How to use it: 
  The Demand Plan component of APO can be used to create a demand plan based on historical data, current market trends, and customer preferences. The demand plan can then be used to create an optimized production and distribution plan. The Demand Plan also provides tools for analyzing customer demand and creating forecasts based on the analysis. 
  
  Tips & Tricks: 
  When creating a demand plan, it is important to consider the accuracy of the data being used. Historical data should be checked for accuracy and any discrepancies should be addressed before creating the plan. Additionally, it is important to consider the current market trends and customer preferences when creating the plan. 
  
  Related Information: 
  The Demand Plan component of APO is closely related to other components of the APO module such as Supply Network Planning (SNP) and Production Planning/Detailed Scheduling (PP/DS). These components can be used in conjunction with the Demand Plan to create an optimized production and distribution plan. Additionally, the Demand Plan can be integrated with other SAP modules such as Materials Management (MM) and Sales & Distribution (SD).