What is demand management in SAP PP-MP - Production Planning?

SAP Term: demand management

• Component: PP-MP

• Component Name: Production Planning

• Description: The planning of requirement quantities and requirement dates for finished products and important assemblies, and definition of the strategy for planning and producing or procuring a finished product. The result of demand management is the demand program. Demand management can be done manually or based on previous planning results such as sales planning, SOP, and forecast.

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• Key Concepts: 
  Demand management is a component of SAP Production Planning and Material Requirements Planning (PP-MP). It is used to plan and manage the demand for materials and services in an organization. It helps to ensure that the right amount of materials and services are available when needed, while also helping to reduce costs. 
  
  How to use it: 
  Demand management in SAP PP-MP can be used to create forecasts of future demand, analyze past demand, and plan for future demand. It can also be used to create orders for materials and services, as well as track the status of those orders. Additionally, it can be used to monitor inventory levels and adjust production plans accordingly. 
  
  Tips & Tricks: 
  When using demand management in SAP PP-MP, it is important to ensure that the data being used is accurate and up-to-date. Additionally, it is important to regularly review forecasts and adjust them as needed. Finally, it is important to ensure that orders are placed in a timely manner so that materials and services are available when needed. 
  
  Related Information: 
  Demand management in SAP PP-MP is closely related to other components such as material requirements planning (MRP), production planning (PP), and inventory management (IM). Additionally, it is often used in conjunction with other software solutions such as enterprise resource planning (ERP) systems.