What is supply horizon in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: supply horizon

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: This horizon determines how the system calculates the total supply in three different time horizons short-term, mid-term, and long-term by assigning supply categories to key figures for the three different time periods. For example, you can specify the categories that contribute to the distribution receipts key figure for mid-term planning.

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• Key Concepts: 
  Supply horizon is a term used in SAP Supply Network Planning (SNP). It is the time period for which the SNP module plans and optimizes the supply chain. The supply horizon is typically set to cover a certain number of weeks or months, depending on the company's needs. 
  
  How to use it: 
  The supply horizon can be set in the SNP module of SAP. This can be done by going to the “Planning Horizon” tab in the SNP module and setting the desired time period. The supply horizon should be set to cover enough time to ensure that all necessary planning and optimization can be done. 
  
  Tips & Tricks: 
  It is important to keep in mind that the supply horizon should not be set too far into the future, as this can lead to inaccurate planning and optimization. It is also important to remember that the supply horizon should be adjusted as needed, as changes in demand or other factors may require a different time period for planning and optimization. 
  
  Related Information: 
  The supply horizon is closely related to other concepts such as safety stock, lead time, and inventory levels. All of these concepts are important for ensuring that the supply chain is optimized and running smoothly. Additionally, understanding how these concepts interact with each other can help companies better manage their supply chains.