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What exactly is cross-plant planning in SNP?

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Hello gurus, I've recently been trying to understand 'cross-plant planning' in APO SNP but I still didn't fully get it.

My understanding of cross-plant planning is the following: creating a procurement/production/stock transfer plan

using multiple plants at the same time. Is my understanding correct?

Also, please tell me if the imaginary example I wrote below can be considered cross-plant planning.

In my supply chain, there are 4 plants (A, B, C, D). My customer ordered 10000 pcs of chairs (finished good), so I decided to procure raw materials and produce chairs in my plants. I procured enough raw materials for each plant and produced 2500 chairs in each plant(which adds up to 10000).

I would be glad if you could help me.

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"Cross-plant-planning" refers to using a special procurement type in the material master which in fact is a source of supply definition for plants within same company code. Example: your plant A is where you receive and ship Customer orders. The chairs you produce in plant B,C,D can be sourced into A by setting special procurement type indicator in the material master in plant A (MARC-SOBSL). What will happen is that MRP (in ERP) or the Heuristics (APO-SNP) will create stock transfer requisitions to source the chairs from B,C,D into A. In case B,C,D produce the same materials you can also use quota arrangements to say "if I have a 100 demand in A please source 20 from B, 30 from C and 50 from D.

Here is the official ERP6 help on this topic / term "Cross-plant-planning": SAP ERP help for Cross-plant-planning (PP-MRP). The special procurement type in ERP material master gets integrated into APO via CIF by creating a product-specific Transportation Lane from source to target location with creation indicator = S. Respective APO help is here: Integration of SpecProcType into APO