What is pegged order in SAP PP-MRP - Material Requirements Planning?

SAP Term: pegged order

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A function for determining the requirements quantities and dates of intermediate products and finished products that are the source of a fixed and planned receipt at a specific production level. The pegged order is used to find which assemblies, planned or customer independent requirements are not covered if delivery or production is delayed or incomplete.

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• Key Concepts: 
  A pegged order is a type of planned order in SAP's Material Requirements Planning (MRP) component. It is used to ensure that a certain material requirement is met at a specific time. The pegged order is linked to the material requirement and is triggered when the requirement is created. 
  
  How to use it: 
  In SAP, pegged orders are created automatically when a material requirement is created. The pegged order will be linked to the material requirement and will be triggered when the requirement is created. The pegged order will then be used to ensure that the material requirement is met at the specified time. 
  
  Tips & Tricks: 
  When creating a pegged order, it is important to ensure that the quantity and timing of the order are correct. This will ensure that the material requirement is met at the specified time. Additionally, it is important to monitor the status of the pegged order to ensure that it is being fulfilled correctly. 
  
  Related Information: 
  SAP's MRP component also includes other types of planned orders such as production orders and purchase orders. These can be used in conjunction with pegged orders to ensure that material requirements are met in a timely manner. Additionally, SAP's MRP component also includes features such as inventory management and capacity planning which can be used to optimize material requirements planning.