Product Hirarchy and allocation(Very Urgent yaar)

[Former Member]

R Product hierarchy and product allocation linked in any way to each other.

whats the diffrence if answer is no and how if yes.

What do u mean by both of them (I Wanna expalin them to a client)

Rgds

[Lakshmipathi]

1) Product Hierarchy

The product hierarchy is used to group materials by combining different features. It is used for analyses and pricing. A product hierarchy can consist of up to eighteen characters. Its features can be combined in various ways.

2) Product Allocation

A precise planning and controlling mechanism is of the utmost importance for the execution of competitive order processing with guaranteed efficient and timely delivery to the customer of the required order quantity. Unforseen problems, such as production deficits or increased demand can have critical consequences for order processing and must be brought under control as soon as possible.

Product allocation is a function provided by the R/3 system for carrying out these control options intended to help your company to avoid critical requirement and procurement situations. This should enable you to keep production to a minimum at the same time as allowing you to react quickly to bottlenecks and changing market situations.

In the R/3 system, product allocations represent an ordered allocation of production for certain periods. Product allocations can be created according to various criteria (i.e., customer, regions).

thanks

G. Lakshmipathi