Factory calendar contain company specific dates such as alternate working Saturdays, Plant shutdown etc.
You can create your company factory calendar via transaction code 'SCAL'.
Assignment of the factory calendar by plant is done in transaction code 'SM30 - V_T001W'.
An example of a SAP application that uses the factory calendar is the SAP MRP modules.
Assuming that you have a specified an alternate working Saturday, MRP will postponed the planned orders to the next working day if it happened to falls on a non-working Saturday.
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