What is allowed excess requirement quantity in SAP AP-RC-CBP - SCM-Constraint Based Planning Engine?

SAP Term: allowed excess requirement quantity

• Component: AP-RC-CBP

• Component Name: SCM-Constraint Based Planning Engine

• Description: The quantity by which requirements can exceed forecast requirements in one time period. It sets a threshold above which excess requirements can consume forecast requirements in other time periods. Requirements below this threshold cannot consume forecast requirements in other time periods. The sum of the forecast quantity and the allowed excess requirement quantity defines the total actual requirement quantity allowed in one time period. An allowed excess requirement quantity is calculated by multiplying the consumption start percentage with the forecast requirement quantity of a time period.

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• Key Concepts: 
  Allowed Excess Requirement Quantity is a feature of the SAP Constraint Based Planning Engine (AP-RC-CBP) that allows for an increase in the quantity of a material requirement beyond the planned quantity. This feature is used to ensure that the material requirement is met, even if the planned quantity is not sufficient. 
  
  How to use it: 
  The Allowed Excess Requirement Quantity feature can be enabled in the SAP Constraint Based Planning Engine by setting the “Allowed Excess Requirement Quantity” parameter to “Yes”. This will allow for an increase in the quantity of a material requirement beyond the planned quantity. 
  
  Tips & Tricks: 
  When using the Allowed Excess Requirement Quantity feature, it is important to consider the impact that this may have on other parts of the supply chain. For example, if an increase in material requirement leads to an increase in production costs, this should be taken into account when setting the “Allowed Excess Requirement Quantity” parameter. 
  
  Related Information: 
  The Allowed Excess Requirement Quantity feature is part of the SAP Constraint Based Planning Engine (AP-RC-CBP). For more information on this feature, please refer to the SAP Help documentation.