What is inventory value in SAP EPM-SCP - Supply Chain Performance Management?

SAP Term: inventory value

• Component: EPM-SCP

• Component Name: Supply Chain Performance Management

• Description: The total value of inventory in different stages of the supply chain

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• Key Concepts: 
  Inventory value is a term used in SAP EPM-SCP Supply Chain Performance Management to refer to the total value of all inventory items held by a company. This includes both raw materials and finished goods. It is calculated by multiplying the quantity of each item by its unit cost.
  
  How to use it: 
  Inventory value can be used to measure the performance of a company’s supply chain. It can be used to compare the cost of inventory items over time, or to compare the cost of different types of inventory items. It can also be used to identify areas where costs can be reduced or efficiency improved.
  
  Tips & Tricks: 
  It is important to keep track of inventory value on a regular basis, as it can provide valuable insights into the performance of a company’s supply chain. It is also important to ensure that the unit costs used in the calculation are accurate, as this will affect the accuracy of the inventory value.
  
  Related Information: 
  Inventory value is closely related to other metrics such as inventory turnover and days of supply. These metrics can provide additional insights into the performance of a company’s supply chain.