What is pegging strategy in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: pegging strategy

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Rule which specifies in which order the system should cover requirements in dynamic pegging and in which order the system should use the product receipts in the pegging interval to cover a requirement. The pegging strategy therefore controls: which requirements the system covers first which receipts the system uses first

Smart SAP Assistant

• Key Concepts: 
  A pegging strategy is a feature of the Production Planning and Detailed Scheduling (PPS) component of SAP's Supply Chain Management (SCM) module. It is used to determine the relationship between the supply and demand of materials in a production process. The pegging strategy helps to ensure that the right amount of materials are available at the right time, and that the production process runs smoothly. 
  
  How to use it: 
  The pegging strategy is used to define the relationship between supply and demand in a production process. It can be used to determine how much material is needed for each step in the production process, as well as when it should be delivered. The pegging strategy can also be used to identify any potential bottlenecks or delays in the production process. 
  
  Tips & Tricks: 
  When setting up a pegging strategy, it is important to consider the entire production process, from start to finish. This will help ensure that all materials are available when they are needed, and that any potential delays or bottlenecks are identified and addressed. Additionally, it is important to regularly review and update the pegging strategy as needed, as changes in the production process may require adjustments to the pegging strategy. 
  
  Related Information: 
  The pegging strategy is closely related to other features of SAP's SCM module, such as material requirements planning (MRP) and capacity requirements planning (CRP). These features can be used in conjunction with the pegging strategy to ensure that materials are available when they are needed, and that production processes run smoothly.