Sales & Operations Planning

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. Rough-cut planning can also be carried out to determine the amounts of the capacities and
other resources required to meet these targets.

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 suitable for the planning of finished materials, but not for the planning of the materials’ component
parts.

You pass on SOP plans to Demand Management (PP-MP-DEM) in the form of independent
requirements. In turn, this data is fed to Master Production Scheduling (PP-MP-MPS) and Material
Requirements Planning (PP-MRP).

Features: SOP is made up of two application components:

 Standard SOP (PP-SOP)

 Flexible Planning (LO-LIS-PLN)

Standard SOP

Standard SOP comes largely preconfigured with the system.

Flexible Planning

Flexible Planning offers multiple options for customized configuration: you can plan on any organizational
level, and also define the content and the layout of the planning screens.
Basics of Sales & Operations Planning
Information structure:

The Sales & Operations Planning (SOP) application is based on information structures.

An information structure is a statistics file containing operational data. This can be either
planning data you anticipate will happen or actual data that happened. An information structure
contains three kinds of information: characteristics,key figures, and a period unit. Information
structures are used for data evaluation, projection, and analysis in all the logistics information
systems.

T-code: MC23
Planning method

One of the key importances in SOP is the planning method applied to the information

structure. The planning method determines how data is distributed to different corporate units.
You define your planning methods in Customizing (in Set parameters for info structures and key
figures).

Three planning methods are available:

 Consistent planning

 Level-by-level planning

 Delta planning

Consistent planning:

 Data is stored at the most detailed level of the planning hierarchy.

 Planning levels are interdependent: changes made at one planning level immediately affect
all other planning levels. The system performs aggregation and disaggregation at runtime.
 The proportional factors required for automatic disaggregation are defined in two different
ways: either using the planned data or the relevant constant proportional factors. You can
have the system calculate the proportional factors.

Level-by-Level Planning:

 Data is stored at all planning levels.

 You can plan each planning level separately.
 Planning levels are independent of each other; plans at different levels need not necessarily
be consistent.
 Both top-down and bottom-up planning are possible.
 You can have the system predefine the proportional factors of characteristic values
automatically, on the basis of existing (actual or planned) data.
Planning type:

A planning type is a customized view on the planning table. You might have one view for sales
planning and one for production planning.
A planning type is based on an information structure. This can be either a standard information
structure or a self-defined information structure. You therefore have almost infinite possibilities with regard
to the information you can plan. In other words, planning types provide a flexible tool for the planning,
storage, and analysis of any logistics data. In consistent planning, the information structure on which a
planning type is based is always self-defined.
Information structures are maintained in Customizing for the Logistics Information System (in Maintain
self-defined information structures). If you intend to use the consistent planning method, you must
create your own information structure.
A planning type defines the content and layout of the lines in the planning table as well as the
mathematical operations, in the form of macros, which can be performed on these lines.
There are no restrictions on the number of planning types you can create for one information structure.

Standard Planning Types

Standard SOP comes with three planning types:

· SOPKAPA - This planning type is used for the planning of individual product groups.
· SOPKAPAM - This planning type is used for the planning of individual materials.
· SOPDIS - This planning type is used for the dual-level planning of product group hierarchies.

In Flexible planning you can create your own planning type as per the requirement