What is constraint-based planning in SAP SCM-APO - Advanced Planning and Optimization?

SAP Term: constraint-based planning

• Component: SCM-APO

• Component Name: Advanced Planning and Optimization

• Description: A form of production planning which is based on the assumption that the whole production process is determined by certain bottlenecks. Possible bottlenecks that have a crucial influence on production are: - Resources with low capacity - Raw materials that are only available in limited quantities The bottlenecks are planned in constraint-based planning with special attention. A resource with low capacity is planned with priority. Planning of all remaining resources is dependent on the planning results of this work center.

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• Key Concepts: 
  Constraint-based planning is a type of planning used in SAP Advanced Planning and Optimization (SCM-APO). It is a method of planning that takes into account the constraints of the system, such as capacity, resources, and availability. It uses mathematical algorithms to determine the best possible solution for a given set of constraints. 
  
  How to use it: 
  Constraint-based planning can be used to optimize production and supply chain processes. It can be used to determine the most efficient way to produce a product or service, taking into account the available resources and constraints. It can also be used to optimize inventory levels, ensuring that the right amount of inventory is available at the right time. 
  
  Tips & Tricks: 
  When using constraint-based planning, it is important to consider all of the available resources and constraints. This will ensure that the best possible solution is found. Additionally, it is important to consider any potential changes in the system that could affect the results of the planning process. 
  
  Related Information: 
  Constraint-based planning is closely related to other types of planning such as linear programming and simulation. Additionally, it can be used in conjunction with other SAP solutions such as SAP Supply Chain Management (SCM) and SAP Manufacturing Execution (MES).