What is preferred location in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: preferred location

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Location within the group of locations that belong to a virtual location for consolidated ordering. At the preferred location, the system aggregates and consolidates demand and stock of all locations of the location for consolidated ordering. During planning, the preferred location defines the following factors for all locations of the location for consolidated ordering: - Calendar - Replenishment lead time - Rounding rules - Deployment indicators Distribution requirements planning DRP chooses the preferred location as the location of the virtual location for consolidated ordering with the longest delivery time from the parent location.

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• Key Concepts: 
   Preferred location is a feature in SAP SCM-APO-SPP Service Parts Planning that allows users to define a preferred location for a particular item. This location is used as the default when creating a supply chain plan. The preferred location can be changed at any time, allowing users to adjust their supply chain plans accordingly. 
  
  How to use it: 
  To set a preferred location for an item, go to the “Planning” tab in SAP SCM-APO-SPP Service Parts Planning. Select the item you want to set the preferred location for and click “Edit”. In the “Location” field, select the preferred location from the drop-down menu. Click “Save” to save your changes. 
  
  Tips & Tricks: 
  When setting a preferred location for an item, consider the item’s lead time and availability. If an item has a long lead time, it may be beneficial to set the preferred location closer to the customer in order to reduce delivery times. 
  
  Related Information: 
  For more information on SAP SCM-APO-SPP Service Parts Planning, visit the SAP Help Portal (https://help.sap.com/viewer/product/SCM_APO_SPP/).