What is source location in SAP (SCM-APO - Advanced Planning and Optimization)?

SAP Term: source location

• Component: SCM-APO

• Component Name: Advanced Planning and Optimization

• Description: Location that supplies a product.

Smart SAP Assistant

• Key Concepts: 
  Source location is a term used in SAP Advanced Planning and Optimization (APO) to refer to the physical location from which goods are sourced. It is used to define the origin of a product or material, and can be used to determine the most efficient supply chain route for a given product. 
  
  How to use it: 
  Source locations are used in APO to define the origin of a product or material. This information is then used to determine the most efficient supply chain route for that product. Source locations can be defined at the plant, warehouse, or supplier level, depending on the needs of the organization. 
  
  Tips & Tricks: 
  When defining source locations in APO, it is important to consider the cost and time associated with each potential source location. This will help ensure that the most efficient supply chain route is chosen for each product. Additionally, it is important to consider any potential constraints that may affect the supply chain route, such as transportation costs or availability of materials. 
  
  Related Information: 
  Source locations are closely related to other concepts in APO, such as demand planning and supply network planning. Demand planning is used to forecast customer demand for a given product, while supply network planning is used to determine the most efficient supply chain route for that product. By combining these two concepts with source locations, organizations can ensure that their supply chains are optimized for cost and efficiency.