What is supply horizon in SAP PP-SOP - Sales and Operations Planning?

SAP Term: supply horizon

• Component: PP-SOP

• Component Name: Sales and Operations Planning

• Description: Indicates the number of days for which the system considers the ATD quantity and any additional quantity produced. A quantity produced beyond the supply push horizon is not considered in DRP when the system calculates deployment during the deployment run. The user specifies the number of days in the supply horizon in MRP 4 of the material master record.

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• Key Concepts: 
  Supply Horizon is a feature of the SAP PP-SOP Sales and Operations Planning component. It is used to define the time period for which the system will consider supply and demand data when creating a production plan. The supply horizon can be set to any length of time, from one day to several years. 
  
  How to use it: 
  The supply horizon is set in the SAP system by entering the desired length of time in the “Supply Horizon” field. This field can be found in the “Planning Parameters” tab of the PP-SOP Sales and Operations Planning component. Once the supply horizon has been set, the system will consider all supply and demand data within that time period when creating a production plan. 
  
  Tips & Tricks: 
  When setting the supply horizon, it is important to consider both short-term and long-term needs. For example, if a company is expecting a large influx of orders in the near future, they may want to set their supply horizon to a longer period of time so that they can plan for those orders. On the other hand, if a company is expecting a decrease in orders, they may want to set their supply horizon to a shorter period of time so that they can adjust their production plan accordingly. 
  
  Related Information: 
  The supply horizon is just one of many features available in the SAP PP-SOP Sales and Operations Planning component. Other features include demand forecasting, inventory optimization, and capacity planning. All of these features work together to create an efficient and effective production plan.