What is upward cone in SAP (AP-SDM - SCM Supply and Demand Matching)?

SAP Term: upward 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 where-used planning view" and that is cone shaped when displayed in a graph. The point of the cone is at the bottom of the graph and represents the material receipt. The chain of requirements and receipts that use the receipt flow up from this point to form the body of the cone.

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• Key Concepts: 
  Upward cone is a feature of the SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (APS) module. It is used to identify and prioritize supply and demand opportunities in order to optimize inventory levels. The upward cone is a graphical representation of the supply and demand relationship, with the x-axis representing the supply and the y-axis representing the demand. The upward cone is used to identify potential opportunities for inventory optimization. 
  
  How to use it: 
  The upward cone can be used to identify potential opportunities for inventory optimization. It can be used to identify areas where there is an excess of supply or an excess of demand, as well as areas where there is a balance between supply and demand. The upward cone can also be used to identify areas where there may be a need for additional inventory or where inventory can be reduced. 
  
  Tips & Tricks: 
  When using the upward 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 relationship, such as seasonality or changes in customer demand. Additionally, it is important to consider any constraints that may affect the ability to optimize inventory levels, such as lead times or minimum order quantities. 
  
  Related Information: 
  The SAP Supply and Demand Matching (SDM) component of the Advanced Planning and Scheduling (APS) module can be used in conjunction with other SAP modules, such as Materials Management (MM), Sales and Distribution (SD), Production Planning (PP), and Warehouse Management (WM). Additionally, SAP offers a variety of tools that can be used to analyze supply and demand relationships, such as the Supply Chain Cockpit, Supply Chain Control Tower, and Supply Chain Analytics.