Suitable for long/medium term planning, with an aim to streamline a company’s sales and operational planning, SOP is a forecasting tool enabling you to set up sales, production and other supply chain targets based on existing, future or historical data, SOP is most suitable for planning finished goods and not for material component planning.
SOP plans are passed on to demand management (DEM) in the form of independent requirement which in turn is fed into MPS (master production scheduling) and MRP (material Requirement Planning).
The results of SOP can be passed on to profitability analysis, cost center accounting and activity based costing
SOP provides convenient method for sales quality planning, production quantity planning, medium and long term planning. An SOP is created for individual product or for product groups
the production planner use the SOP created by the marketing department to generate a 12 month production plan.
The production plan can be created for individual product or for group of product.
The production quantities are calculated by comparing the forecasted quantities with the target inventory level at the end of each month
Product A – 60%
Product B – 40%
Product plan – 100 200 300 400 500 600 700 800
Product A 100*60/100, 200*60/100, 300*60/100, 400*60/100, 500*60/100, 600*60/100
Product B 100*40/100, 200*40/100, 300*40/100, 400*40/100, 500*40/100, 600*40/100
Process Flow of standard SOP:
- Create material master with material type FERT – MM01
- Create Product Group – MC84
- Create Plan – MC81
- Copy Planning Version – MC78
- Change Plan – MC87
- Transfer Planning Data to Demand Management – MC75
- Change Plan – MD62
- MRP RUN – MD03
- Stock / Requirement List – MD04
- Planned Orders are converted to next preceding documents
- MRP Run à MD02
The above PIRs are converted into planned orders
- Planned Orders further converted into production order à MD04
You can tcode CO40 (convert PIR to production order)
- Release production order
- GI for production order à MB1A / 261
- Confirm production order à CO15
- GR Wref production order à MB31 / MIGO
- Stock overview, MMBE
PRODUCT A = Material 990000000000000103 – BOM: 96.0110000 – Routing
PRODUCT B = Material 990000000000000104 – BOM: 96.0110000 – Routing














