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

SAP Term: planning hierarchy

• Component: PP

• Component Name: Production Planning and Control

• Description: A user-defined combination of characteristics from an information structure that is used in Sales & Operations Planning. It allows top-down and bottom-up planning and the integration of centralized and decentralized planning functions.

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• Key Concepts: 
  Planning hierarchy is a feature of SAP Production Planning and Control (PP) that allows users to create a hierarchical structure of production plans. This structure can be used to define the relationships between different levels of production plans, such as material requirements planning (MRP), capacity requirements planning (CRP), and sales and operations planning (SOP). The planning hierarchy also allows users to define the relationships between different materials, resources, and locations. 
  
  How to use it: 
  To use the planning hierarchy in SAP PP, users must first create a master plan. This plan will serve as the top-level plan in the hierarchy and will contain all of the necessary information for the other plans. Once the master plan is created, users can then create subordinate plans that are linked to the master plan. These subordinate plans can be used to define specific material requirements, resource requirements, and location requirements. 
  
  Tips & Tricks: 
  When creating a planning hierarchy in SAP PP, it is important to ensure that all of the necessary information is included in each plan. This includes material requirements, resource requirements, and location requirements. Additionally, it is important to ensure that all of the plans are linked correctly so that changes made in one plan are reflected in all other plans. 
  
  Related Information: 
  For more information on using the planning hierarchy in SAP PP, please refer to the official SAP documentation. Additionally, there are many online tutorials available that provide step-by-step instructions on how to use this feature.