What is plan in SAP (SCM-APO - Advanced Planning and Optimization)?

SAP Term: plan

• Component: SCM-APO

• Component Name: Advanced Planning and Optimization

• Description: A plan describes the work processes and components involved in the manufacture of a product or - in the manufacture of co-products - several products on a non-order-specific basis. Key elements of a plan are: The worksteps activities necessary to manufacture the product The resources needed to carry out the activities The temporal relationships between the activities The components needed to manufacture the product To determine which plan is used to manufacture a product, a production process model PPM is generated for the plan. The bill of materials and the routing or the recipe from the R/3 or ERP system correspond to the plan in SAP SCM. To avoid confusion, in this context the "plan" is also often referred to more precisely as the "PPM plan".

Smart SAP Assistant

• Key Concepts: 
  Planning in SAP SCM-APO Advanced Planning and Optimization (APO) is the process of creating a plan for the production, distribution, and delivery of goods and services. It involves forecasting demand, determining the optimal production and distribution strategies, and scheduling resources to meet customer requirements. The goal of planning is to ensure that the right products are available at the right time and in the right quantities. 
  
  How to use it: 
  In SAP SCM-APO, planning is done using a variety of tools such as Demand Planning, Supply Network Planning, Production Planning/Detailed Scheduling, and Global Available-to-Promise. Demand Planning is used to forecast customer demand and create a demand plan. Supply Network Planning is used to create an optimal supply chain network that meets customer requirements. Production Planning/Detailed Scheduling is used to create a production plan that meets customer demand while optimizing resources. Global Available-to-Promise is used to determine if a product can be delivered on time based on current inventory levels. 
  
  Tips & Tricks: 
  When creating a plan in SAP SCM-APO, it is important to consider all aspects of the supply chain including demand forecasting, supply network design, production scheduling, and inventory management. It is also important to consider any external factors such as supplier lead times or customer preferences that may affect the plan. 
  
  Related Information: 
  For more information on planning in SAP SCM-APO, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SCM_APO/7.5/en-US