What is production source of supply in SAP SCM-IBP-PLA - Planning Framework?

SAP Term: production source of supply

• Component: SCM-IBP-PLA

• Component Name: Planning Framework

• Description: A master data object that models the production or assembly of a product to satisfy demand for a particular location product. The production source of supply represents a single-level bill of material: The source header includes the product. The item level includes the components that are required to make the product and their quantities. The production source of supply also supports co-production. The quantity ratios between the main product and the co-products also at header level are defined by output coefficients.

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• Key Concepts: 
  Production source of supply is a term used in the SAP SCM-IBP-PLA Planning Framework. It is a way of defining the source of supply for production orders. This source of supply can be either internal or external, and it is used to determine the availability of materials and resources for production. 
  
  How to use it: 
  The production source of supply is set up in the SAP system and can be used to determine the availability of materials and resources for production. It is important to ensure that the production source of supply is set up correctly, as this will affect the accuracy of the production plan. The production source of supply can be changed at any time, depending on the needs of the business. 
  
  Tips & Tricks: 
  When setting up the production source of supply, it is important to consider the availability of materials and resources. This will help ensure that the production plan is accurate and that there are no delays in production due to lack of materials or resources. Additionally, it is important to keep track of any changes made to the production source of supply, as this could affect the accuracy of the production plan. 
  
  Related Information: 
  The SAP SCM-IBP-PLA Planning Framework provides a comprehensive set of tools for planning and managing production processes. It includes features such as demand forecasting, inventory optimization, and capacity planning. Additionally, it provides tools for managing material requirements planning (MRP) and supplier relationship management (SRM).