Tip Doctor, Insider Learning Network.
This SAP SCM tip comes from Sobhan Vemulapalli, an SAP Advanced Planning & Optimization (SAP APO) specialist at RadInnova. He presented his advice during an SCM Expert Live session at the Logistics and Supply Chain Management 2011 conference in Orlando, FL.
Characteristics dependent planning (CDP) is part of the SAP APO Production Planning/Detailed Scheduling (PP/DS) functionality. CDP’s biggest benefit is that it allows for the configuration of planned orders in PP/DS prior to the receipt of sales orders, thereby planning and procuring parts and components in advance. The final manufacturing begins after the receipt of the actual sales order.
However, CDP also has some drawbacks to be aware of:
- CDP is not vigorous when planning products with multilevel variant configurations that need interactive assignment of characteristic values at lower level configurations, a point Vemulapalli emphasized during his SCM Expert Live session
- CDP is not designed to work with Supply Network Planning and Capable-to-Match planning processes
Any company that uses or is considering use of CDP needs to carefully evaluate its benefits and limitations based on the specific business needs.
er information about CDP, read Vemulapalli’s SCM Expert article, “Accurately Plan Configurable Products with SAP APO Characteristics Dependent Planning.”
SCM Expert is the leading independent online knowledgebase for professionals who manage and support SAP SCM activities.