What is planning point in SAP SCM-SOP - Sales & Operations Planning?

SAP Term: planning point

• Component: SCM-SOP

• Component Name: Sales & Operations Planning

• Description: The key figure value for a given planning combination and time period. &Example& Sales revenue of product “Tablet PC” for January 2012

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• Key Concepts: 
  A planning point is a location in the supply chain where demand and supply are balanced. It is used in Sales & Operations Planning (S&OP) to determine the optimal balance between supply and demand. The planning point is typically a warehouse, distribution center, or other location where goods are stored and shipped. 
  
  How to use it: 
  The planning point is used to determine the optimal balance between supply and demand. This is done by analyzing the current inventory levels, customer orders, and production plans. The goal is to ensure that there is enough inventory to meet customer demand while avoiding overstocking or understocking. 
  
  Tips & Tricks: 
  When setting up a planning point, it is important to consider the size of the facility, its proximity to customers, and its ability to handle different types of products. Additionally, it is important to consider the cost of storing and shipping goods from the planning point. 
  
  Related Information: 
  The planning point is an important part of S&OP, which is a process for managing the supply chain. It involves forecasting customer demand, analyzing inventory levels, and creating production plans that meet customer needs while avoiding overstocking or understocking. Additionally, S&OP can help identify potential risks in the supply chain and develop strategies for mitigating them.