What is product decomposition in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: product decomposition

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Procedure that speeds up the solution process during an optimization run by creating product groups and then solving the optimization problem for each individual product group.

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• Key Concepts: 
  Product decomposition is a process used in Supply Network Planning (SNP) of SAP's SCM-APO module. It is used to break down a product into its component parts, allowing for more efficient planning and production. This process helps to identify the components of a product, their quantities, and their relationships to each other. 
  
  How to use it: 
  Product decomposition can be used to create a bill of materials (BOM) for a product. This BOM can then be used to plan production and inventory levels. It can also be used to identify the components of a product and their relationships to each other. 
  
  Tips & Tricks: 
  When creating a BOM, it is important to ensure that all components are accurately identified and that the quantities are correct. This will help ensure that the production process runs smoothly and that inventory levels are maintained. 
  
  Related Information: 
  Product decomposition is closely related to material requirements planning (MRP). MRP is used to plan production based on the BOM created by product decomposition. It is also related to inventory management, as it helps to identify the components of a product and their quantities.