What is parameter optimization in SAP PP-MP - Production Planning?

SAP Term: parameter optimization

• Component: PP-MP

• Component Name: Production Planning

• Description: The optimization of the smoothing factors in forecasting. Factors are used that provide the most exact forecast values for values known from the time series.

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• Key Concepts: 
  Parameter optimization in SAP PP-MP Production Planning and Manufacturing is a process of adjusting the parameters of a production system to achieve the desired output. This process involves analyzing the current parameters, identifying areas of improvement, and then adjusting the parameters to optimize the system. The goal is to maximize efficiency and minimize costs. 
  
  How to use it: 
  Parameter optimization in SAP PP-MP Production Planning and Manufacturing can be done manually or with the help of an automated tool. To manually optimize parameters, users must first identify the current parameters and analyze them to determine which ones need to be adjusted. Once identified, users can adjust the parameters to achieve the desired output. 
  
  Tips & Tricks: 
  When optimizing parameters in SAP PP-MP Production Planning and Manufacturing, it is important to consider both short-term and long-term goals. Short-term goals may include increasing efficiency or reducing costs, while long-term goals may include improving customer satisfaction or increasing market share. Additionally, it is important to consider the impact of any changes on other parts of the system. 
  
  Related Information: 
  Parameter optimization in SAP PP-MP Production Planning and Manufacturing is closely related to other processes such as capacity planning, resource planning, and scheduling. Additionally, parameter optimization can be used in conjunction with other tools such as machine learning algorithms or predictive analytics to further improve efficiency and reduce costs.