What is optimization horizon in SAP SCM-APO-OPT - Optimization?

SAP Term: optimization horizon

• Component: SCM-APO-OPT

• Component Name: Optimization

• Description: Time segment in which the schedule should be optimized. During optimization, only those activities that lie entirely within the optimization horizon can be rescheduled. Activities that lie entirely or partially outside of the optimization horizon are not rescheduled; they are fixed during optimization. However, due to their relationships and pegging relationships to the other activities within the optimization horizon, these fixed activities determine how far these other activities can be shifted.

Smart SAP Assistant

• Key Concepts: 
  Optimization horizon is a component of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) module. It is used to define the time period for which an optimization process should be run. This time period can be set to a specific number of days, weeks, or months. The optimization horizon helps to ensure that the optimization process is run for the most appropriate time period, taking into account the current supply chain situation. 
  
  How to use it: 
  The optimization horizon can be set in the SCM-APO-OPT module. The user can select the desired time period for the optimization process, such as a specific number of days, weeks, or months. Once the time period has been selected, the optimization process will be run for that time period. 
  
  Tips & Tricks: 
  When setting the optimization horizon, it is important to consider the current supply chain situation. For example, if there are seasonal fluctuations in demand, it may be beneficial to set a longer optimization horizon so that the optimization process takes these fluctuations into account. 
  
  Related Information: 
  The optimization horizon is just one component of SAP's SCM-APO-OPT module. Other components include demand planning, inventory planning, and supply network planning. All of these components work together to optimize the supply chain and ensure that it runs as efficiently as possible.