What is distribution strategy in SAP PP - Production Planning and Control?

SAP Term: distribution strategy

• Component: PP

• Component Name: Production Planning and Control

• Description: The system uses a distribution strategy to distribute capacity requirements. This strategy determines: Whether the capacity requirements are distributed using the earliest or the latest dates of an operation Whether the basic values of the distribution function are used for discrete or continuous distribution Time basis the system uses for the distribution, factory calendar, Gregorian calendar, or working or operating time

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• Key Concepts: 
  Distribution strategy is a component of SAP Production Planning and Control (PP) that helps to determine the most efficient way to distribute materials and goods. It is used to define the rules for how materials and goods should be distributed, such as which warehouses should be used, which transportation routes should be taken, and which suppliers should be used. 
  
  How to use it: 
  In order to use the distribution strategy component of SAP PP, users must first define the rules for how materials and goods should be distributed. This includes defining which warehouses should be used, which transportation routes should be taken, and which suppliers should be used. Once these rules have been defined, the system can then automatically generate the most efficient distribution plan based on these rules. 
  
  Tips & Tricks: 
  When defining the rules for distribution strategy, it is important to consider factors such as cost, time, and availability of resources. Additionally, it is important to ensure that the rules are flexible enough to accommodate changes in demand or supply. 
  
  Related Information: 
  The distribution strategy component of SAP PP is closely related to other components such as material requirements planning (MRP) and inventory management. Additionally, it is important to consider other factors such as customer service levels when determining the most efficient distribution plan.