What is SKU level horizon method 1 in SAP IS-AFS-PP - Production Planning and Control?

SAP Term: SKU level horizon method 1

• Component: IS-AFS-PP

• Component Name: Production Planning and Control

• Description: MRP search method where MRP only uses stock at material level beyond the SKU level horizon to satisfy requirements within the SKU level horizon at SKU level.

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• Key Concepts: 
  SKU level horizon method 1 is a production planning and control component of SAP's IS-AFS-PP system. It is used to determine the optimal production plan for a given product or SKU (Stock Keeping Unit). The method takes into account the current inventory levels, customer demand, and production capacity to create a plan that maximizes efficiency and profitability. 
  
  How to use it: 
  SKU level horizon method 1 can be used to create a production plan for a given SKU. The user must first enter the current inventory levels, customer demand, and production capacity into the system. The system will then generate an optimal production plan based on these inputs. The user can then adjust the plan as needed to meet their specific needs. 
  
  Tips & Tricks: 
  When using SKU level horizon method 1, it is important to ensure that all inputs are accurate and up-to-date. This will ensure that the generated plan is as efficient and profitable as possible. Additionally, it is important to consider any potential changes in customer demand or production capacity when creating the plan. 
  
  Related Information: 
  SKU level horizon method 1 is part of SAP's IS-AFS-PP Production Planning and Control system. Other components of this system include material requirements planning (MRP), capacity requirements planning (CRP), and shop floor control (SFC). These components can be used in conjunction with SKU level horizon method 1 to create an even more efficient and profitable production plan.