What is supply ratio in SAP MA-SMOPS - SmartOps?

SAP Term: supply ratio

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: The proportion of the orders that go to each supplier when a stocking point has multiple sources from which it can order.

Smart SAP Assistant

• Key Concepts: 
  Supply ratio is a metric used in SAP MA-SMOPS SmartOps to measure the balance between supply and demand. It is calculated by dividing the total supply of a product by the total demand for that product. The resulting number is then used to determine whether there is an oversupply or undersupply of the product.
  
  How to use it: 
  The supply ratio can be used to identify potential problems in the supply chain. If the ratio is too high, it could indicate an oversupply of the product, which could lead to excess inventory and higher costs. If the ratio is too low, it could indicate an undersupply of the product, which could lead to stockouts and lost sales.
  
  Tips & Tricks: 
  It is important to monitor the supply ratio on a regular basis in order to ensure that there is a balance between supply and demand. Additionally, it can be helpful to compare the supply ratio with industry benchmarks in order to identify potential areas for improvement.
  
  Related Information: 
  The supply ratio can be used in conjunction with other metrics such as inventory turnover rate and service level in order to gain a better understanding of the overall performance of the supply chain. Additionally, it can be used to identify potential areas for improvement in order to optimize operations and reduce costs.