What is resource overload in SAP SCM-APO - Advanced Planning and Optimization?

SAP Term: resource overload

• Component: SCM-APO

• Component Name: Advanced Planning and Optimization

• Description: Scheduling situation, in which the operations scheduled for a resource exceed the capacity of that resource. Resource overloads can frequently be tolerated in planning, as long as they do not exceed specific thresholds. Larger resource overloads require the intervention of the planner. The system supports planning for such resource overloads by automatically issuing alerts. The planner defines if, or from which threshold, alerts for resource overloading should be issued. Resource overloads can be prevented by using finite planning.

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• Key Concepts: 
  Resource overload is a term used in SAP Advanced Planning and Optimization (SCM-APO) to describe a situation where the resources available to complete a task are insufficient. This can occur when the demand for a particular resource exceeds the capacity of the resource, resulting in an inability to meet the demand. 
  
  How to use it: 
  In SAP Advanced Planning and Optimization, resource overload can be identified by analyzing the capacity of resources and comparing it to the demand for those resources. If the demand exceeds the capacity, then resource overload has occurred. To address this issue, organizations can either increase the capacity of the resource or reduce the demand for it. 
  
  Tips & Tricks: 
  When dealing with resource overload, it is important to consider both short-term and long-term solutions. Short-term solutions may include increasing the capacity of the resource or reducing the demand for it. Long-term solutions may include investing in new resources or reallocating existing resources to better meet demand. 
  
  Related Information: 
  Resource overload is closely related to resource underutilization, which occurs when there is not enough demand for a particular resource. Both issues can be addressed by analyzing capacity and demand and making adjustments accordingly. Additionally, both issues can be addressed through strategic planning and optimization techniques such as capacity planning and supply chain optimization.