What is long-term planning in SAP PP - Production Planning and Control?

SAP Term: long-term planning

• Component: PP

• Component Name: Production Planning and Control

• Description: A simulation of future stock and requirements.

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• Key Concepts: 
  Long-term planning in SAP Production Planning and Control (PP) is a process that helps companies plan for the future by creating a long-term production plan. This plan includes the production of goods and services, the resources needed to produce them, and the timeline for production. It also takes into account any changes in demand or supply that may occur over time. 
  
  How to use it: 
  Long-term planning in SAP PP is used to create a long-term production plan. This plan is created by analyzing current and future demand, supply, and resources. The plan is then used to determine the best way to produce goods and services in order to meet customer needs. The plan can also be used to identify potential problems or opportunities that may arise in the future. 
  
  Tips & Tricks: 
  When creating a long-term production plan, it is important to consider all potential changes in demand or supply that may occur over time. It is also important to consider any potential risks or opportunities that may arise from the plan. Additionally, it is important to review the plan regularly to ensure that it is still meeting customer needs and that any changes are taken into account. 
  
  Related Information: 
  SAP PP also includes short-term planning, which is used to create a short-term production plan. This plan focuses on meeting immediate customer needs and can be used to adjust production levels quickly in response to changes in demand or supply. Additionally, SAP PP includes capacity planning, which helps companies determine the resources needed to meet customer needs over time.