Skip to Content
author's profile photo Former Member
Former Member

Forecasting

I am not clear on the terms product mix and volume mix forecast.

Can we carry out product mix and volume mix forecast in SOP in R/3, or is APO DP required for this?

Can anybody explain?

Add a comment
10|10000 characters needed characters exceeded

Related questions

3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Oct 27, 2008 at 11:32 AM

    Hi Amit,

    Product Mix : Term defines the wide variety of products and less voulme that would be planned within period.

    Volume Mix : Term defines when variety of products planned is very less but the volume of products for few SKU's is very high

    You can plan as many products required in APO DP based on CVC combinations used for planning.

    Not sure for R3 SOP.

    Thukral

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Oct 28, 2008 at 06:49 AM

    Thanks for your answer, Thukral,

    But can you explain in some detail as to how a product mix and volume mix forecasting can be created and done in DP?

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Oct 31, 2008 at 10:43 AM

    Hi Amit,

    product Mix :

    The product mix of a company, which is generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. A product is a distinct unit within the product line that is distinguishable by size, price, appearance, or some other attribute. For example, all the courses a university offers constitute its product mix; courses in the marketing department constitute a product line; and the basic marketing course is a product item. Product decisions at these three levels are generally of two types: those that involve width (variety) and depth (assortment) of the product line and those that involve changes in the product mix occur over time.

    It is extremely important for any organization to have a well-managed product mix. Most organizations break down managing the product mix, product line, and actual product into three different levels.

    Product-mix decisions are concerned with the combination of product lines offered by the company. Management of the companies' product mix is the responsibility of top management. Some basic product-mix decisions include: (1) reviewing the mix of existing product lines; (2) adding new lines to and deleting existing lines from the product mix; (3) determining the relative emphasis on new versus existing product lines in the mix; (4) determining the appropriate emphasis on internal development versus external acquisition in the product mix; (5) gauging the effects of adding or deleting a product line in relationship to other lines in the product mix; and (6) forecasting the effects of future external change on the company's product mix.

    Vol mix :

    The Volume Mix operation manipulates the scalar data associated with

    volume primitives. For each pair of volume primitives in the source

    group and the mix group, the given calculation is performed and the

    results stored in the source group's primitive. Note that the volumes do

    not need to have the same orientation or resolution, the second volume

    will be sampled at the orientation and resolution of the first volume.

    Regards,

    Madhu

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.