What is target range of coverage in SAP IS-R - SAP for Retail?

SAP Term: target range of coverage

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Control parameter for the forecast in Replenishment. The target range of forecast is the number of periods for which the material is to be available at the customer. It is used in forecasting for the calculation of the target stock required to cover requirements during the forecast period. In forecasting, the target range of coverage is also termed the number of forecast periods.

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  Key Concepts: 
  Target range of coverage is a feature of the IS-R SAP for Retail component. It allows retailers to set a target range of coverage for their products, which is the desired amount of stock that should be available in stores. This helps retailers to ensure that they have enough stock to meet customer demand, while also avoiding overstocking and wasting resources. 
  
  How to use it: 
  To use the target range of coverage feature, retailers must first set a target range for each product. This can be done by entering the desired minimum and maximum stock levels for each product into the system. Once these levels have been set, the system will automatically adjust the stock levels in stores to ensure that they remain within the target range. 
  
  Tips & Tricks: 
  It is important to regularly review and adjust the target range of coverage for each product, as customer demand can change over time. Additionally, retailers should consider setting different target ranges for different stores, as customer demand can vary from store to store. 
  
  Related Information: 
  The target range of coverage feature is part of the IS-R SAP for Retail component, which also includes features such as inventory management, pricing optimization, and customer segmentation.