What is location product group in SAP SCM-APO-MD - Master Data?

SAP Term: location product group

• Component: SCM-APO-MD

• Component Name: Master Data

• Description: A grouping of products and locations using product and location hierarchies. A location product hierarchy is generated on the basis of a product hierarchy and a location hierarchy. The header location product of this hierarchy represents the location product group. Each hierarchical level is created as an independent product or location in master data and can also be used as a normal product or location. Hierarchical planning is executed in Supply Network Planning at location product group level. This term was used in hierarchical planning up to SCM Release 4.1. As of SCM 5.0, it has been replaced by the term "header location product" and the planning process is now called "aggregated planning".

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• Key Concepts: 
  Location product groups are used in SAP Advanced Planning and Optimization (APO) to group products together based on their location. This allows for more efficient planning and optimization of supply chain processes. The location product group is a master data component in the SCM-APO-MD module. 
  
  How to use it: 
  Location product groups can be created in the SCM-APO-MD module. The user must first define the characteristics of the group, such as the location, product type, and product group. Once the characteristics are defined, the user can assign products to the group. This allows for more efficient planning and optimization of supply chain processes. 
  
  Tips & Tricks: 
  When creating a location product group, it is important to consider the characteristics of the products that will be assigned to it. This will ensure that the group is optimized for efficient planning and optimization of supply chain processes. 
  
  Related Information: 
  Location product groups are related to other master data components in the SCM-APO-MD module, such as product types and product groups. It is important to understand how these components interact with each other in order to optimize supply chain processes.