What is the correct sequence for planning?

The correct sequence for planning is characterized by the logical flow from high-level demand forecasting down to the detailed production scheduling. In this case, starting with production plans allows for an understanding of what needs to be manufactured based on aggregated demands.

Beginning with production plans ensures that the company can assess production capabilities and align resources accordingly. This leads to the development of demand plans, which take into account market conditions, customer requirements, and business objectives.

From there, establishing planned independent requirements is essential as it provides a breakdown of what materials or components will be necessary to meet the overall production plans derived from demand. Lastly, the Material Requirements Planning (MRP) process comes into play, which calculates the material requirements for manufacturing based on these planned independent requirements, ensuring that the right materials are available at the right time and in the right quantities.

This sequence reflects a comprehensive approach to planning within the SAP framework, ensuring that production aligns effectively with anticipated demand and available resources. The logical progression from production needs to material requirements facilitates optimal operational efficiency.