What is load leveling in SAP AP-SDM - SCM Supply and Demand Matching?

SAP Term: load leveling

• Component: AP-SDM

• Component Name: SCM Supply and Demand Matching

• Description: A process that redistributes the capacity requirements of production planning orders on a resource for a time period. It is used to even out the capacity load of resources by getting rid of capacity overloads.

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• Key Concepts: 
  Load leveling is a feature of the SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (AP-SDM) module. It helps to ensure that supply and demand are balanced by automatically adjusting the production plan to match the forecasted demand. This helps to reduce inventory levels and improve customer service. 
  
  How to use it: 
  Load leveling can be used to adjust the production plan in order to match the forecasted demand. It can be used to adjust the production plan for a single product or for multiple products. The user can specify the parameters for load leveling, such as the time period, the number of days to level, and the maximum amount of adjustment that can be made. 
  
  Tips & Tricks: 
  When using load leveling, it is important to consider the impact on other parts of the supply chain. For example, if load leveling is used to reduce inventory levels, it may also reduce customer service levels. It is also important to consider how load leveling will affect other parts of the production plan, such as lead times and delivery dates. 
  
  Related Information: 
  The SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (AP-SDM) module also includes features such as demand forecasting, inventory optimization, and capacity planning. These features can be used in conjunction with load leveling to ensure that supply and demand are balanced in an efficient manner.