What is downward cone in SAP AP-SDM - SCM Supply and Demand Matching?

SAP Term: downward cone

• Component: AP-SDM

• Component Name: SCM Supply and Demand Matching

• Description: A hierarchical network of receipts and requirements that is created by the "order fulfillment planning view" and that is cone shaped when displayed in a graph. The point of the cone is at the top of the graph and represents the material requirement. The chain of receipts and requirements that are required to fulfill the requirement flow down from this point to form the body of the cone.

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• Key Concepts: 
  Downward cone is a feature of the SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (AP-SDM) module. It is used to identify and prioritize supply and demand opportunities in order to optimize inventory levels. The downward cone is a graphical representation of the supply and demand situation, with the demand side represented by a downward-sloping line and the supply side represented by an upward-sloping line. The intersection of these two lines represents the optimal inventory level. 
  
  How to use it: 
  The downward cone can be used to identify and prioritize supply and demand opportunities. It can be used to determine the optimal inventory level for a given product or product group, as well as to identify potential areas for improvement in terms of inventory management. The downward cone can also be used to identify potential areas for cost savings, such as reducing excess inventory or increasing production efficiency. 
  
  Tips & Tricks: 
  When using the downward cone, it is important to consider both the supply and demand sides of the equation. It is also important to consider any external factors that may affect the supply and demand situation, such as changes in customer demand or changes in production capacity. Additionally, it is important to consider any potential risks associated with changes in inventory levels, such as stockouts or overstocks. 
  
  Related Information: 
  The SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (AP-SDM) module is designed to help organizations optimize their inventory levels by identifying and prioritizing supply and demand opportunities. Other features of the AP-SDM module include forecasting, capacity planning, and production scheduling. Additionally, SAP offers a range of other solutions for inventory management, such as Warehouse Management (WM), Extended Warehouse Management (EWM), and Inventory Management (IM).