What is material planning in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: material planning

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: A process that evaluates the net requirements and balances demand and supply within a planning area. Material planning creates any required orders for material which are scheduled based on the bill of operations or the procurement lead time. The required capacity is also determined.

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• Key Concepts: 
  Material planning is a component of SAP Supply Chain Planning and Control (SCM-SCP). It is used to plan and manage the supply of materials needed for production. It helps to ensure that the right materials are available at the right time and in the right quantity. It also helps to optimize inventory levels and reduce costs associated with overstocking or understocking. 
  
  How to use it: 
  Material planning can be used to create a material plan that takes into account customer demand, production capacity, and inventory levels. It can also be used to monitor and adjust the plan as needed. The material plan can be used to generate purchase orders, production orders, and other documents needed for the supply chain process. 
  
  Tips & Tricks: 
  When creating a material plan, it is important to consider factors such as lead times, safety stock levels, and supplier reliability. It is also important to monitor the plan regularly and adjust it as needed in order to ensure that materials are available when needed. 
  
  Related Information: 
  Material planning is closely related to other components of SAP SCM-SCP such as demand planning, inventory management, and production scheduling. It is also related to other SAP modules such as Materials Management (MM) and Production Planning (PP).