What is fair-share rule in SAP PP - Production Planning and Control?

SAP Term: fair-share rule

• Component: PP

• Component Name: Production Planning and Control

• Description: The DRP uses fair-share logic to calculate deployment based on the available to deploy ATD quantity, the open sales orders, the safety stock, and the forecast, if demand exceeds supply. You specify a fair-share rule in the MRP 4 of the material master record to identify how you want fair share to be implemented: The objective of fair-share rule A is to distribute the stock proportionally to all DCs according to demand. The objective of fair-share rule B is to raise the stock levels in all DCs to approximately the same percentage of target stock.

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• Key Concepts: 
  The fair-share rule in SAP Production Planning and Control (PP) is a tool used to ensure that resources are allocated fairly and efficiently. It works by assigning a certain percentage of the available resources to each production order, based on the order's priority. This ensures that all orders are given an equal chance to be completed on time. 
  
  How to use it: 
  The fair-share rule can be enabled in the PP configuration settings. Once enabled, it will automatically assign a certain percentage of the available resources to each production order based on its priority. This ensures that all orders are given an equal chance to be completed on time. 
  
  Tips & Tricks: 
  When using the fair-share rule, it is important to set the correct priorities for each production order. This will ensure that the most important orders are given the highest priority and thus receive the most resources. Additionally, it is important to monitor the resource utilization regularly to ensure that all orders are being completed on time. 
  
  Related Information: 
  The fair-share rule is just one of many tools available in SAP Production Planning and Control (PP). Other tools include capacity planning, material requirements planning, and production scheduling. All of these tools work together to ensure that production orders are completed efficiently and on time.