Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data.
Use SOP to streamline and consolidate your company’s sales and production operations.
SOP is particularly suitable for long- and medium-term planning.
SOP is made up of two components.
1. Standard SOP
2. Flexible planning..
Standard SOP comes largely pre configured with the system. Standard SOP uses info structure S076.The planning method for the Standard SOP information structure (S076) is level-by-level planning. Standard SOP works on Product Groups.
Product group: A product group combines other product groups and materials. This combination depends on whatever criteria best meet the needs of your company. Examples include the production cycle, product design, or market niche.
Product groups are classified according to whether they are multi-level or single-level.
A product group is multi-level if it contains other product groups. However, the lowest level in a product group hierarchy always consists of materials.
A product group is single-level if its members are materials only. A material or product group can be a member of more than one owner product group.
How to see Info structure S076
Click on Maintain self defined Information structures..
then click on display…
enter the info structure no as S076 then enter…
Process Flow of Standard SOP:
- Creation of Product group – MC84
- Create plan in inactive version – MC81
- Disaggregate product group plan – MC76
- Convert Inactive version to active version – MC78
- Transfer SOP plan to Demand management. – MC75
Detailed flow with screen shots…
- Creation of Product group : Materials used: 2121 and 2122
Create product group MC84
Now enter the two materials and give the proportion factors as shown below….
Now Save. Product group is saved
2. Create plan in inactive version – MC81
Now create Sales plan for the Product group as shown below.
Enter sales qty as shown below
Now enter twice
3. Disaggregate product group plan – MC76
Now disaggregate the Plan of the product group to members as shown below…
Click on inactive version
Now select your version
Now go to Edit and create Production plan and syn to Sales as shown below…
Now you can observe that plan entered for product group is disaggregated to members ( Materials ) as per the proportion factors defined in Product group.
4. Convert Inactive version to active version- MC78
Copy the plan in inactive version (008) to active version A00 as shown below….
Enter the required details
Then click on copy
Click on yes
5. Transfer plan to Demand management – MC75
Now enter the required details
Now click on Transfer Now
Now check in MD04 for the planned independent requirements of the material as shown below….