What is LP procedure in SAP SCM-APO-PPS-MMP - Model Mix Planning?

SAP Term: LP procedure

• Component: SCM-APO-PPS-MMP

• Component Name: Model Mix Planning

• Description: Mathematical optimization procedure that can be used in for planning complex line networks. Starting with the requirements with dates and quantities, this procedure creates period packages per line within a horizon taking restrictions and available capacity into account.

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• Key Concepts: 
  LP procedure stands for Linear Programming procedure. It is a mathematical optimization technique used in SAP's Model Mix Planning (MMP) component of the Advanced Planner and Optimizer (APO) module of the Supply Chain Management (SCM) suite. The LP procedure is used to determine the optimal mix of products to meet customer demand while minimizing costs. 
  
  How to use it: 
  The LP procedure is used to create a mathematical model of the production process. This model takes into account factors such as customer demand, production costs, and available resources. The LP procedure then uses this model to calculate the optimal mix of products that will meet customer demand while minimizing costs. 
  
  Tips & Tricks: 
  When using the LP procedure, it is important to ensure that all relevant factors are taken into account. This includes customer demand, production costs, and available resources. Additionally, it is important to ensure that the model accurately reflects the production process. 
  
  Related Information: 
  The LP procedure is just one of many optimization techniques used in SAP's Model Mix Planning component. Other optimization techniques include heuristics, simulation, and constraint programming. Additionally, there are many other components of the APO module that can be used to optimize supply chain operations.