Production Plans in Standard SOP
In a production plan, you plan the quantities you need to produce in order to meet your sales plan. The system then calculates stock levels and days’ supply for each period on the basis of the sales and production quantities and any target data. In standard SOP, you create a production plan using one of the following:
If you select this strategy, the system copies the sales quantities into the production quantities line. Thus, planned production is exactly the same as planned sales in this planning horizon.
If you select this strategy, the system uses any existing stock to cover sales quantities. When this stock has been used up, production quantities are planned in synchronization with sales quantities.
If you select this strategy, the system calculates the production quantities needed to achieve target stock levels. You specify target stock levels on the target stock level line (if desired, using the distribution functions). The system then works out the production quantities on the basis of the sales quantities and your target stock levels.
If you select this strategy, the system calculates the production quantities needed to achieve target days’ supplies. You specify target days’ supplies on the target days’ supply line (if desired, using the distribution functions). The system then works out the production quantities. The days’ supply for a period is the stock level divided by the average requirements (where average requirements = sales/number of workdays, and the number of workdays is given in the factory calendar defined in Customizing).
See LO Supply Chain Planning Interfaces.