What is SKU horizon in SAP IS-AFS-PP - Production Planning and Control?

SAP Term: SKU horizon

• Component: IS-AFS-PP

• Component Name: Production Planning and Control

• Description: Period in which the AFS MRP carries out planning at SKU level. Requirements outside of the SKU horizon are planned only at material level. Planning at material level and at SKU level in the SKU horizon is carried out separately. That means that requirements at material level cannot be satisfied by procurement at SKU level.

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• Key Concepts: 
  SKU horizon is a feature of the Production Planning and Control (PP/C) component of SAP. It is used to define the number of days in the future that a production plan should consider when calculating the availability of materials and resources. This helps to ensure that the production plan is based on accurate and up-to-date information. 
  
  How to use it: 
  The SKU horizon can be set in the PP/C configuration. It is important to note that the SKU horizon should be set to a value that is appropriate for the specific production environment. For example, if the production environment is highly dynamic, then a longer SKU horizon may be necessary. On the other hand, if the production environment is relatively static, then a shorter SKU horizon may be sufficient. 
  
  Tips & Tricks: 
  It is important to remember that the SKU horizon should be set to a value that is appropriate for the specific production environment. If it is set too low, then it may lead to inaccurate production plans. On the other hand, if it is set too high, then it may lead to unnecessary delays in production planning. 
  
  Related Information: 
  The SKU horizon feature of SAP PP/C can be used in conjunction with other features such as material requirements planning (MRP) and capacity requirements planning (CRP). These features can help to ensure that production plans are based on accurate and up-to-date information. Additionally, SAP PP/C also provides tools for analyzing and optimizing production plans.