What is red zone in SAP PP-DD - Demand-Driven Replenishment?

SAP Term: red zone

• Component: PP-DD

• Component Name: Demand-Driven Replenishment

• Description: The buffer zone denoting the highest severity in the stock buffer, indicating low stock levels and an immediate need for replenishment. It is calculated as the sum of red base and red safety.

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• Key Concepts: 
  Red zone is a term used in the SAP PP-DD Demand-Driven Replenishment component. It is a parameter that defines the minimum stock level of an item. When the stock level of an item falls below the red zone, it triggers a replenishment order. 
  
  How to use it: 
  The red zone can be set up in the SAP system by going to the PP-DD Demand-Driven Replenishment component and selecting the item for which you want to set up the red zone. Then, enter the desired minimum stock level for that item. Once this is done, any time the stock level of that item falls below the red zone, a replenishment order will be triggered. 
  
  Tips & Tricks: 
  It is important to set up the red zone correctly in order to ensure that replenishment orders are triggered at the right time. It is also important to monitor stock levels regularly to ensure that they do not fall below the red zone. 
  
  Related Information: 
  The red zone is related to other parameters such as safety stock and maximum stock levels, which can also be set up in the SAP system. It is important to understand how these parameters interact with each other in order to ensure efficient inventory management.