Hi KK,
Aggregated planning helps in cross location planning. Instead of product location level one can also do planning at aggregate level e.g. product family level and then have it disaggregated at product location level. It helps in performance improvement. This hierarchy does not come via CIF so needs to be created manually in SCM – product hierarchy and location hierarchy. Product- location hierarchy can be generated based on these two.
So, in your scenario we will have product hierarchy containing P1 and P2, location hierarchy containing L1 and L2 and product location hierarchy can be generated based on these two.
Please have a look at below document where product interchangeability concepts are explained along with planning book changes -
Product Interchangeability in APO SNP
Hope it helps.
Regards,
Alok