This video provides an overview of demand management and planning strategies in SAP PP.
What is Demand Management?
Demand management is the process of forecasting and planning for the quantity of products that will be needed by customers. It is an important part of production planning, as it helps to ensure that the right amount of products are manufactured at the right time.
Planning Strategies in SAP PP
There are two primary planning strategies in SAP PP: Make To Stock (MTS) and Make To Order (MTO).
- MTS is a strategy where products are manufactured in anticipation of demand. This is typically used for products with high demand and low variability.
- MTO is a strategy where products are manufactured based on specific customer orders. This is typically used for products with low demand and high variability.
The Choice of Planning Strategy
The choice of planning strategy depends on the specific product and market conditions. For example, MTS would be a good choice for a product that has a high demand and is relatively stable, while MTO would be a good choice for a product that has a low demand and is subject to frequent changes.
Practical Demos in SAP:
The author provides hands-on demonstration of how to enter planned independent requirements in SAP. He also showcases the process of generating production orders, confirmations, and goods receipts.
