What is critical stock value in SAP CRM-BTX - Business Transactions?

SAP Term: critical stock value

• Component: CRM-BTX

• Component Name: Business Transactions

• Description: Used for defining threshold values for product stock values. The values from which product stock should be classed as critical and very critical are defined in the system at either product or material group level.

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• Key Concepts: 
  Critical stock value is a feature of the CRM-BTX Business Transactions component of SAP software. It is used to determine the minimum amount of stock that must be maintained in order to ensure that customer orders can be fulfilled. This value is determined by taking into account the lead time for ordering new stock, the expected demand for the product, and the current stock levels. 
  
  How to use it: 
  The critical stock value can be set up in the SAP system by entering the desired values for lead time, expected demand, and current stock levels. Once these values have been entered, the system will calculate the critical stock value and display it on the screen. This value can then be used to determine when new orders should be placed in order to maintain adequate stock levels. 
  
  Tips & Tricks: 
  It is important to keep an eye on the critical stock value as it can change over time due to changes in demand or lead time. It is also important to ensure that the values entered into the system are accurate in order to get an accurate critical stock value. 
  
  Related Information: 
  For more information on how to use the critical stock value feature of SAP software, please refer to the official SAP documentation or contact your local SAP support team.