What is adjustment horizon in SAP (SCM-APO-PPS - Production Planning and Detailed Scheduling)?

SAP Term: adjustment horizon

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Period of time used in sales order oriented planning, for example. The adjustment horizon in days includes the period from today + opening period + offset in which the start time of the first activity of a planned order must fall, so that the order can be adjusted. If the start of the first activity of an order is outside this period, the order is not adjusted. During adjustment the quantities of the planned order and the forecast are adjusted to correspond to the quantity in the sales order. If no sales order exists, both the planned order and forecast are deleted together with any planned orders and dependent requirements that are pegged to the initial order.

Smart SAP Assistant

• Key Concepts: 
  Adjustment Horizon is a feature of the Production Planning and Detailed Scheduling (PPS) component of SAP's Supply Chain Management (SCM) module. It is used to define the time period in which the system will consider changes to the production plan. The adjustment horizon can be set to a specific number of days, weeks, or months. 
  
  How to use it: 
  The adjustment horizon can be set in the PPS configuration settings. It is important to set the adjustment horizon to an appropriate length of time that will allow for changes to be made without disrupting the production plan. For example, if the adjustment horizon is set too short, then any changes made may not be reflected in the production plan until after the adjustment horizon has passed. 
  
  Tips & Tricks: 
  When setting the adjustment horizon, it is important to consider how often changes are made to the production plan and how long it takes for those changes to be implemented. If changes are made frequently, then a shorter adjustment horizon may be more appropriate. On the other hand, if changes are made less frequently, then a longer adjustment horizon may be more suitable. 
  
  Related Information: 
  The adjustment horizon is closely related to other features of PPS such as lead time and safety stock. Lead time is the amount of time it takes for a product to move from one stage of production to another. Safety stock is an inventory buffer that is used to ensure that there are enough products available in case of unexpected demand or supply disruptions.