What is pull deployment in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: pull deployment

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Distribution of goods within a bill of distribution triggered by a current demand at a child location during the replenishment lead time.

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• Key Concepts: 
  Pull deployment is a supply chain management (SCM) strategy used in SAP Advanced Planning and Optimization (APO) Service Parts Planning (SPP). It is a demand-driven approach to inventory management that uses customer demand signals to trigger replenishment orders. This strategy helps to reduce inventory costs and improve customer service levels. 
  
  How to use it: 
  In SAP APO SPP, pull deployment is used to manage inventory levels. The system monitors customer demand signals and automatically triggers replenishment orders when the inventory level drops below a certain threshold. This helps to ensure that the right amount of inventory is available at the right time. 
  
  Tips & Tricks: 
  When setting up pull deployment in SAP APO SPP, it is important to set the right thresholds for triggering replenishment orders. If the threshold is too low, it can lead to excessive inventory costs. If the threshold is too high, it can lead to stock-outs and poor customer service levels. 
  
  Related Information: 
  Pull deployment is one of several supply chain management strategies available in SAP APO SPP. Other strategies include push deployment, vendor managed inventory, and consignment stock. Each strategy has its own advantages and disadvantages, so it is important to choose the right one for your business needs.