What is PQR classification in SAP PP-DD - Demand-Driven Replenishment?

SAP Term: PQR classification

• Component: PP-DD

• Component Name: Demand-Driven Replenishment

• Description: Classifying a product or component into type P, Q or R based on its usage in BOMs, with products classified as type P being used in the highest number of BOMs and products classified as type R being used in the lowest number of BOMs.

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• Key Concepts: 
  PQR classification is a feature of the PP-DD Demand-Driven Replenishment component of SAP. It is used to classify materials into different categories based on their replenishment characteristics. This classification helps to determine the replenishment strategy for each material, such as whether it should be replenished manually or automatically. 
  
  How to use it: 
  In order to use the PQR classification, you must first define the characteristics of each material in the system. This includes defining the replenishment strategy, the minimum and maximum stock levels, and any other relevant information. Once this is done, you can assign each material to a PQR class. This will determine how the material is replenished and how often it needs to be reordered. 
  
  Tips & Tricks: 
  When assigning materials to a PQR class, it is important to consider the replenishment strategy that best suits each material. For example, some materials may require frequent manual replenishment while others may be better suited for automatic replenishment. Additionally, it is important to consider the minimum and maximum stock levels for each material in order to ensure that inventory levels are maintained at an optimal level. 
  
  Related Information: 
  The PQR classification feature is part of the PP-DD Demand-Driven Replenishment component of SAP. This component also includes features such as demand forecasting, inventory optimization, and supplier collaboration. Additionally, there are several other components of SAP that can be used in conjunction with PP-DD Demand-Driven Replenishment in order to optimize inventory management and supply chain operations.