What is threshold value in SAP SCM-SOP - Sales & Operations Planning?

SAP Term: threshold value

• Component: SCM-SOP

• Component Name: Sales & Operations Planning

• Description: A single value defined by the user for example, 500. The units of the value correspond to the unit selected for the key figure.

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• Key Concepts: 
  Threshold value is a parameter used in Sales & Operations Planning (SOP) in SAP SCM. It is used to define the minimum and maximum values of a certain item or product that can be planned. The threshold value is used to ensure that the planned values do not exceed the maximum or go below the minimum. 
  
  How to use it: 
  The threshold value can be set up in the SOP planning area. It is important to note that the threshold value should be set up before any planning takes place. Once the threshold value is set, it will be used to determine the maximum and minimum values for each item or product that is planned. 
  
  Tips & Tricks: 
  It is important to remember that the threshold value should be set up before any planning takes place. This will ensure that the planned values do not exceed the maximum or go below the minimum. Additionally, it is important to review and adjust the threshold value periodically as needed. 
  
  Related Information: 
  For more information on setting up and using threshold values in SAP SCM-SOP, please refer to SAP Help documentation.