From the course: Planning Basics in SAP
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Planning overview - SAP ERP Tutorial
From the course: Planning Basics in SAP
Planning overview
- [Instructor] Where does planning actually start? You might be surprised to learn that MRP is usually the lowest level of planning. So, let's consider the big picture. Planning functions typically start with a forecast. Just like meteorologists predict the weather for the week, the forecast intends to predict future customer sales. To do this, the organization will use statistical models, fancy algorithms, and historical sales as a basis for future predictions. This is where we will start. The forecast is really just a placeholder in the planning engine. A placeholder that represents future customer orders that are expected to be received. The placeholder is necessary so that the organization has some form of demand in the planning engine to drive requirements down through the supply chain. Much like the weather forecast will prepare you for what type of clothing or gear you might require for the week, the sales forecast…
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