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

SAP Term: Demand Planning

• Component: AP-DP

• Component Name: SCM-OP Demand Planning

• Description: The process of providing accurate and measurable estimates of future demand.

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• Key Concepts: 
  Demand Planning is a component of SAP's Advanced Planning and Optimization (APO) module. It is used to forecast customer demand and plan the supply chain accordingly. It uses statistical methods to analyze historical data and predict future demand. It also takes into account external factors such as seasonality, promotions, and economic trends. 
  
  How to use it: 
  Demand Planning can be used to create a demand plan for a specific product or group of products. This plan can be used to determine the optimal inventory levels, production schedules, and distribution plans. The demand plan can also be used to identify potential risks and opportunities in the supply chain. 
  
  Tips & Tricks: 
  When creating a demand plan, it is important to consider all relevant factors such as seasonality, promotions, and economic trends. Additionally, it is important to regularly review the demand plan and adjust it as needed in order to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  Demand Planning is part of SAP's Advanced Planning and Optimization (APO) module. Other components of APO include Supply Network Planning, Production Planning/Detailed Scheduling, Global Available-to-Promise, and Transportation Planning & Vehicle Scheduling.