What is stock protection in SAP LO-SGT - Segmentation?

SAP Term: stock protection

• Component: LO-SGT

• Component Name: Segmentation

• Description: A functionality used in demand-supply matching processes that protects the stock for demands from high-priority requirement segments even when the actual demand is not yet available in the system. Stock protection allows businesses using a common stock pool for satisfying demands with different priorities to reserve stock for higher-priority demands against lower-priority demands that come in earlier.

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• Key Concepts: 
  Stock protection is a feature of the LO-SGT Segmentation component of SAP software. It allows users to define and manage stock segments, which are groups of materials that are managed together. This helps to ensure that the right materials are available when needed, and that stock levels are kept at an optimal level.
  
  How to use it: 
  To use stock protection, users must first define the segments they wish to manage. This can be done by assigning materials to specific segments, or by creating rules that determine which materials should be included in each segment. Once the segments have been defined, users can then set up stock levels for each segment. This will ensure that the right amount of materials is available when needed.
  
  Tips & Tricks: 
  When setting up stock protection, it is important to consider the size of each segment and the amount of materials that will be needed for each segment. It is also important to consider how often the segments will need to be replenished, as this will affect the amount of materials that need to be kept in stock.
  
  Related Information: 
  Stock protection is just one of many features available in the LO-SGT Segmentation component of SAP software. Other features include inventory management, demand forecasting, and supply chain optimization. All of these features can help users manage their inventory more effectively and efficiently.