SAP ACRONYMS !!
A few of the Acronyms that you would come across in the configs of a typical SAP AFS IS Environment
PTO – Pick To Order is a fixed configuration of a product which you need to order. No changes can be done in the configuration. This assumes that there are enough stocks available to be simply picked and assigned to order and the relevant shipment fulfilled.
ATO – Assemble to Order products have options from which the user can configure the final product. This is where options are available for the user to choose from to assemble the relevant parts to fulfill the order. When it comes to defining it as a manufacturing concept, we would define this as a Pull Based Manufacturing technique, where the assembly is done only after an order
SKU – Stock keeping unit is identification, usually alphanumeric, of a particular product that allows it to be tracked for inventory purposes. Typically, an SKU is associated with any purchasable item in a store or catalog. An SKU is not the same as a product model number from a manufacturer, although the model number could form all or part of the SKU. The SKU is established by the merchant.
ATP – The Global Available-to Promise (ATP) is used to provide a global reconciliation of supply and demand. The “Global ATP” SAP component uses a rules-based strategy to make sure that customers receive the service they have been promised.
RLT – Replenishment Lead Time is the time taken from the identification of the need for stocks to be replenished and the actual replenishment received.
OCM – Order Change Management identifies existing procurement elements (production orders, planned orders, or purchase orders) that are affected by either an engineering change or a change to a sales order for a configurable product.
More to follow soon…
Hope you found this post informative.
Rgds
S.Suren
ssurenlk@msn.com
