How the Master Production Schedule Changed Through Time

Executive Summary The term master production schedule changed through time and differs in critical ways from the term MRP. Four dimensions make up the MPS, but there are questions about whether an MPS is still necessary. A Strangely Named Term The Master Production Schedule or Master Production Schedule was always a problematic term. Firstly it…

How to Understand Transportation Lane Configuration in SAP SNP Part 1

Executive Summary Transportation Lanes are critical master data for APO. We cover the Transporation Lane logic, the logic of the Transportation Lane view, Product Specific Transportation Lanes, how to Transportation Costs control the flow of material with the cost optimizer in SNP, Transportation Lane lot sizes in SAP, and more. Introduction: How Transporation Lanes are…

How to Best Understand the Frozen Planning Period

Executive Summary The frozen planning period is an interval of time in the planning horizon during which a company does not change its supply plan for a product, regardless of events or changes that occur. What is the Frozen Planning Period? I am sometimes asked to describe the frozen planning period and the benefits and…

How to Best Understand The Target Stocking Level and Minimum Stock Level

Executive Summary The target stocking level is the target per product location combination and is a fundamental concept. The┬átarget stocking level is different from the maximum stock level. We cover how different supply planning methods can incorporate a target stock level value. Video Introduction: Using a Target Stocking Level Text Introduction (Skip if You Watched…

How to Best Understand Pegging and Net Requirements in SAP

Executive Summary Supply and demand pegging elements are critical to supply planning in SAP. This article covers how CTM differs in pegging, pegging in PP/DS, two types of pegging, static/fixed and dynamic pegging, and much more. What is Pegging? Peggings are very important for a variety of reasons. Pegging allows a planner to trace the…