Product Hirarchy and allocation(Very Urgent  yaar)

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

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

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  • Product Hiererchy and Allocation

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    Points will be definitely given.
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    Check this [LINK|http://help.sap.com/saphelp_46c/helpdata/en/77/1a39516e36d1118b3f0060b03ca329/content.htm]
    Define Product Hierarchies
    In this step, you define product hierarchies which you can use for statistical analysis or pricing, for example, or you can change their structure. The product hierarchy groups materials by combining different characteristics. Each characteristic is represented by a specific product hierarchy level.
    Example
    A product hierarchy can be structured as follows:
    Level Example Description
    1 00001 Electrical appliances
    2 00002 Household appliances
    3 00000003 Wet appliances
    In this example, a dishwasher belongs to product hierarchy 000010000200000003.
    Standard settings
    In the standard system, the product hierarchy consists of up to 3 levels. The first and second levels have 5 digits and the third level has 8. The maximum number of digits is 18 and the maximum number of levels is 9.
    You can define hierarchy nodes at the individual levels of the product hierarchy.
    From the initial screen you can branch to the following steps:
    Product hierarchy structure
    In the Data Dictionary, you can change the structure of the product hierarchy (e.g. the number of levels).
    Data entry/display
    Here you define the display of the product hierarchy and the format of the accompanying text.
    Product hierarchy
    Here you define your product hierarchies.
    Field catalog for pricing
    Here you make fields of the product hierarchy structure available for use in pricing.
    Field catalog for the Logistics Information System
    Here you make fields of the product hierarchy structure available for use in the Logistics Information System.
    Actions concerning the product hierarchy structure
    Structuring the product hierarchy
    The product hierarchy can be structured via DDIC structure PRODHS. In the standard system, a product hierarchy can be created with up to three levels. The individual levels can contain the following number of digits:
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    1 5
    2 5
    3 8
    This can be changed as of Release 3.0, where it is possible to extend the maximum number of levels to 9.
    If you want to change the standard setting of PRODHS, e.g. you want to change the number of levels, proceed as follows:
    1. Create an appropriate domain in the Data Dictionary (type CHAR with the required length).
    2. Assign these domains to the standard data elements PRODH1, PRODH2, ..., PRODH9.
    Please note that you should use these standard data elements.
    3. Change the structure PRODHS by creating or deleting fields with reference to the data elements.
    Choose ZZPRODHN as field name, where n is the position of the field in the structure PRODHS.
    Example
    You want to change the structure of the product hierarchy from 5/5/8 digits to 5/5/5/3. Proceed as follows:
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    ZPRODH3 with length 5, category CHAR,
    ZPRODH4 with length 3, category CHAR,
    Change structure PRODHS:
    Strucutre PRODHS in the standard system:
    Structure Fields Data element Category Length
    PRODHS ->
    PRODH1 PRODH1 CHAR 5
    PRODH2 PRODH2 CHAR 5
    PRODH3 PRODH3 CHAR 8
    Changes according to example:
    Structure Fields Data element Category Length
    PRODHS ->
    PRODH1 PRODH1 CHAR 5
    PRODH2 PRODH2 CHAR 5
    PRODH3 PRODH3 CHAR 5
    ZZPRODH4 PRODH4 CHAR 3
    Note
    The structure PRODHS and the data elements PRODH1, ..., PRODH9 are only provided by SAP with Release 3.0 and can be changed by the customer from this point onwards.
    Conversion routines for INPUT/OUTPUT
    The product hierarchy can be assigned to a conversion routine. The name of the conversion routine is PRODH. The output template can be defined in Customizing (see below).
    The separators used in the template are not allowed for maintaining the product hierarchy nodes.
    Example:
    If the template is _____/_____/__________
    The symbol "/" cannot be used when maintaining the product hierarchy nodes. In this case, the following entry would not be allowed: 123456/79012345678
    Text concatenation
    The description of a product hierarchy can be determined via concatenation, if required.
    Proceed as follows:
    1. Determine the node preceding the current node
    2. Concatenate the description of the subsequent node with the description from the preceding node.
    The text concatenation is valid for the entire product hierarchy, the concatenated text has a length of 20. Text concatenation can be activated/deactivated in Customizing (see below).
    Note
    Make sure during text concatenation that the text of the product hierarchy does not come from table T179T. In this case function module RV_PRODUKTHIERARCHIE_TEXT_GET is available.
    Allowed symbols for product hierarchy nodes
    If you have stored a template for the conversion routine, the separators in the template are not allowed.
    Actions concerning data entry/display
    You can make two settings regarding the layout of the product hierarchy and the format of the product hierarchy text:
    1. Enter a template for displaying the product hierarchy. This template defines the length of the individual levels and the separators.
    Note that the character used to separate the levels in the template cannot be used in the product hierarchy nodes.
    2. The description of a product hierarchy node can be determined by concatenation if required.
    If you activate text concatenation, the text for one level is added to the description of the higher level and then output. The text of the first level appears at the beginning followed by the text of the second and third levels. Text concatenation applies to the complete product hierarchy. The concatenated text can have a maximum of 20 characters.
    Do not activate text concatenation if you only want to issue the description of the hierarchy levels created for these levels when the product hierarchy was defined.
    Actions concerning the product hierarchy
    The product hierarchy can be freely defined and include up to three levels. The SAP System checks the entry in the field product hierarchy during master data maintenance and copies it to the SD document. The separators used in the template cannot be used in the product hierarchy.
    Note
    Via a matchcode you can search specifically for material master records with a product hierarchy.
    Analyze the product hierarchies in your organization and define their representation in the SAP System.
    1. Assign a characteristic value to the individual levels of your product hierarchy: a 5-character value to levels 1 and 2, and an 8-character value to level 3. The level number is determined automatically.
    A product hierarchy node encompasses a characteristic value of a maximum of 18 characters.
    2. Enter a description for the product hierarchy.
    Actions concerning the field catalog for pricing
    The product hierarchy can be used for functions in pricing. Then the fields of the product hierarchy structure must be entered into the field catalog for pricing.
    Enter the fields of the product hierarchy in the field catalog.
    Actions concerning the field catalog for Logistics Controlling
    The product hierarchy can be used for statistical analyses in the Logistics Information System. The fields of the product hierarchy structure must then be entered in a field catalog for the Logistics Information System.
    Enter the product hierarchy in a field catalog. You can refer to field catalog 'VPHI', which displays the standard settings.
    IMG->Logistic General->MM->Setting for Key fields->Define Relevant to SD->Define Product Hierarchy->Maintain product hierarchy
    Regards

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