What is 'lost sales' in SAP MA-SMOPS - SmartOps?

lost sales - Overview

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: Represents missed sales due to stockouts that are associated with a stocking point for each period of the data horizon.

lost sales - Details

• 
  Key Concepts: 
  Lost sales is a term used in SAP's MA-SMOPS SmartOps module to refer to the potential sales that are lost due to a lack of inventory or other supply chain issues. It is calculated by subtracting the actual sales from the potential sales. 
  
  How to use it: 
  Lost sales can be used to identify areas of improvement in the supply chain. By tracking lost sales, companies can identify areas where they need to increase inventory levels or improve their supply chain processes. This can help them reduce lost sales and increase their overall profitability. 
  
  Tips & Tricks: 
  When tracking lost sales, it is important to consider both the short-term and long-term effects of lost sales. Short-term effects may include decreased customer satisfaction and decreased revenue, while long-term effects may include decreased customer loyalty and decreased market share. 
  
  Related Information: 
  Lost sales is closely related to inventory management and supply chain management. Companies should strive to optimize their inventory levels and supply chain processes in order to reduce lost sales and maximize profits. Additionally, companies should consider using predictive analytics tools to better anticipate customer demand and reduce lost sales.