What is load leveling in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: load leveling

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: A process that distributes work out over time so that resources do not become overloaded and bottlenecks do not form. This is usually achieved by moving orders to earlier or later periods so that the amount of work to be done in sequential time periods is distributed evenly and is achievable.

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• Key Concepts: 
  Load leveling is a supply chain planning and control technique used to even out production and demand over a given period of time. It is used to reduce the amount of inventory needed to meet customer demand, as well as to reduce the amount of overtime and rush orders needed to meet customer demand. 
  
  How to use it: 
  Load leveling can be used in SAP by creating a production plan that takes into account the current demand for a product, as well as the expected future demand. The production plan should also take into account any constraints such as available resources, lead times, and delivery dates. Once the production plan is created, it can be used to create a load leveling schedule that will ensure that production and demand are balanced over the given period of time. 
  
  Tips & Tricks: 
  When creating a load leveling schedule, it is important to consider the impact of any changes in demand or supply on the overall schedule. It is also important to consider any potential bottlenecks or constraints that could affect the schedule. Additionally, it is important to monitor the schedule regularly to ensure that it is still meeting customer demand. 
  
  Related Information: 
  Load leveling is closely related to other supply chain planning and control techniques such as inventory optimization, capacity planning, and supply chain risk management. Additionally, load leveling can be used in conjunction with other SAP modules such as SAP ERP and SAP APO.