The MTS is a planning strategy where the production is done without any relationship to a sales order. The PIR creates demand in the system, and it can be used in a make-to-stock (MTS) planning strategy. The main demand management method is planned independent requirements (PIR). Planning strategy determines the method in which a product is manufactured. There are two main planning methods available in SOP and we can customize further methods based on the requirement.ĭemand management in production planning is handled through the planning strategy.

SOP is also connected with profitability analysis, cost center accounting, and activity-based costing. Information passed through sales and operations planning is passed into Master Production Scheduling (MPS) and Material Requirement Planning (MRP). This is done through a planning tool that uses historical and current data to set up the future supply chain targets in the system. The Sales and Operation Planning (SOP) component in SAP manages sales, production, and other supply chain targets of the organization. Supply Chain Planning Cycle Sales and Operations Planning Below are the key steps that are handled through the production planning process in SAP:Ĭapacity planning and inventory management are used throughout this cycle. Supply chain management focuses on the management of the flow of goods and how the raw materials are transformed into finished products. SAP Production Planning (PP) module provides key functionalities to help organizations manage their supply chain. Production planning is a concept that is designed to manage the supply chain of the organization. The Production Planning Process in SAP is one of the essential business processes which is vital when it comes to manufacturing/assembling organizations. SAP is an ERP system that provides functionalities to manage the entire business process.

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