What is pegging in SAP PP-MRP - Material Requirements Planning?

SAP Term: pegging

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: An evaluation that displays the source requirements or the source procurement proposal of a chosen MRP element. This evaluation is used to check which planned independent requirements will not be met if certain procurement proposals are cancelled or if dates or quantities in the procurement proposal are changed.

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• Key Concepts: 
  Pegging is a feature of SAP's Material Requirements Planning (MRP) component that allows users to trace the origin of a material requirement. It is used to identify the source of a material requirement, such as a sales order, production order, or forecast. Pegging also helps to identify the components and sub-components that are required to fulfill the material requirement. 
  
  How to use it: 
  Pegging can be used in SAP's MRP component by selecting the “Pegging” option from the menu. This will open a window that displays the pegging tree for the material requirement. The pegging tree shows the source of the material requirement and all of its components and sub-components. The user can then select any of these components or sub-components to view more detailed information about them. 
  
  Tips & Tricks: 
  When using pegging, it is important to remember that it only shows the source of a material requirement and not its destination. Therefore, it is important to use other features of SAP's MRP component, such as availability check or capacity check, to determine if there are enough materials available to fulfill the material requirement. 
  
  Related Information: 
  For more information about pegging and other features of SAP's MRP component, please refer to SAP's official documentation or contact your local SAP support team.