What is SKU level horizon method 2 in SAP IS-AFS-PP - Production Planning and Control?

SAP Term: SKU level horizon method 2

• Component: IS-AFS-PP

• Component Name: Production Planning and Control

• Description: MRP search method which allows MRP to allocate stock at SKU level which is beyond the SKU level horizon to requirements before the horizon at SKU level.

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• Key Concepts: 
  SKU level horizon method 2 is a planning method used in the Production Planning and Control (PP/PPC) component of SAP. 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 stock levels, customer demand, and production capacity to determine the most efficient production plan. 
  
  How to use it: 
  The SKU level horizon method 2 can be used in the PP/PPC component of SAP. To use it, first enter the current stock levels, customer demand, and production capacity into the system. Then, select the SKU level horizon method 2 from the list of available planning methods. The system will then generate an optimal production plan based on the data entered. 
  
  Tips & Tricks: 
  When using the SKU level horizon method 2, it is important to ensure that all data entered into the system is accurate and up-to-date. This will ensure that the generated production plan is as efficient as possible. Additionally, it is important to consider any external factors that may affect production, such as supplier delays or changes in customer demand. 
  
  Related Information: 
  The SKU level horizon method 2 is one of several planning methods available in SAP’s PP/PPC component. Other methods include the Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP) methods. Additionally, there are several other components of SAP that can be used to manage production planning and control, such as Materials Management (MM) and Plant Maintenance (PM).