What is product hierarchy in SAP LO - Logistics - General?

SAP Term: product hierarchy

• Component: LO

• Component Name: Logistics - General

• Description: An alphanumeric character string for grouping materials by combining different characteristics. The product hierarchy is used for evaluation and pricing.

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• Key Concepts: 
  Product hierarchy is a feature of the LO Logistics - General component of SAP software. It is used to organize and manage products in a hierarchical structure. This structure allows for easy navigation and access to products, as well as the ability to quickly identify related products. 
  
  How to use it: 
  Product hierarchy can be used to create a tree-like structure of products. This structure can be used to organize products into categories, such as product type, brand, or supplier. It can also be used to assign attributes to each product, such as price, availability, or weight. 
  
  Tips & Tricks: 
  When creating a product hierarchy, it is important to consider how the structure will be used. For example, if the hierarchy is being used for navigation purposes, it should be organized in a way that makes it easy for users to find the products they are looking for. Additionally, it is important to ensure that all relevant attributes are assigned to each product in the hierarchy. 
  
  Related Information: 
  Product hierarchy is closely related to other features of SAP software, such as material master and material groups. Material master is used to store detailed information about each product, while material groups are used to group similar products together for easier navigation and access.