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

SAP Term: product classification

• Component: PP-DD

• Component Name: Demand-Driven Replenishment

• Description: Classifying a product or component based on its goods issue value, decoupled lead time, BOM usage, and variability to identify whether it is relevant for demand-driven replenishment and to define inputs for its buffer settings.

Smart SAP Assistant

• Key Concepts: 
  Product classification is a process used in SAP to categorize products into different groups. This helps to organize and manage products more efficiently. In the PP-DD Demand-Driven Replenishment component, product classification is used to determine the replenishment strategy for each product. 
  
  How to use it: 
  In order to use product classification in the PP-DD Demand-Driven Replenishment component, you must first define the product categories and assign each product to a category. This can be done manually or automatically using a classification system. Once the categories are defined, you can then set up the replenishment strategy for each category. 
  
  Tips & Tricks: 
  When setting up product categories, it is important to consider how products will be used in order to create an effective classification system. For example, if you are selling products that are used in different industries, you may want to create separate categories for each industry. This will help you manage your inventory more efficiently. 
  
  Related Information: 
  For more information on product classification in SAP, please refer to the official SAP documentation on the topic. Additionally, there are many online resources available that provide helpful tips and tricks for setting up product categories in SAP.