What is index type in SAP EPM-SCP - Supply Chain Performance Management?

SAP Term: index type

• Component: EPM-SCP

• Component Name: Supply Chain Performance Management

• Description: A scale used to measure a positive or negative response of an objective such as Reduce Cost, based on predefined threshold values.

Smart SAP Assistant

• Key Concepts: 
  Index type is a feature of SAP EPM-SCP Supply Chain Performance Management that allows users to create and manage indexes. An index is a numerical value that is used to measure the performance of a supply chain. Index types are used to define the parameters of an index, such as the calculation method, the data sources, and the weighting of each data source. 
  
  How to use it: 
  To create an index type, users must first define the parameters of the index. This includes selecting a calculation method, such as average or weighted average, and selecting the data sources that will be used in the calculation. Users can also specify the weighting of each data source, which determines how much each data source contributes to the overall index value. Once all parameters have been defined, users can save the index type and use it to create indexes. 
  
  Tips & Tricks: 
  When creating an index type, it is important to select data sources that are relevant to the performance metric being measured. Additionally, it is important to ensure that all data sources are weighted appropriately so that they contribute equally to the overall index value. 
  
  Related Information: 
  For more information on creating and managing indexes in SAP EPM-SCP Supply Chain Performance Management, please refer to the official SAP documentation.