The Sales and Operation Planning (SOP) component in SAP manages sales, production, and other supply chain targets of the organization. This is done through a planning tool that uses historical and current data to set up the future supply chain targets in the system.
Information passed through sales and operations planning is passed into Master Production Scheduling (MPS) and Material Requirement Planning (MRP). SOP is also connected with profitability analysis, cost center accounting, and activity-based costing. There are two main planning methods available in SOP and we can customize further methods based on the requirement.
* Consistent planning
* Level-by-level planning
