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

SAP Term: yellow zone

• Component: PP-DD

• Component Name: Demand-Driven Replenishment

• Description: The buffer zone denoting medium severity in the stock buffer, indicating a need for replenishment. It is calculated as the multiplicative product of the average daily usage ADU and decoupled lead time DLT for a product or component.

Smart SAP Assistant

• Key Concepts: 
  The yellow zone in SAP PP-DD Demand-Driven Replenishment is a range of inventory levels that are considered to be too low for the current demand. This zone is used to trigger replenishment orders and ensure that the inventory levels remain within an acceptable range. 
  
  How to use it: 
  The yellow zone is set up in the system by defining a minimum and maximum inventory level. When the inventory level falls below the minimum, a replenishment order is triggered. The replenishment order will be based on the demand forecast and will be sent to the supplier. 
  
  Tips & Tricks: 
  It is important to set up the yellow zone correctly in order to ensure that the inventory levels remain within an acceptable range. It is also important to monitor the inventory levels regularly and adjust the yellow zone accordingly. 
  
  Related Information: 
  The yellow zone is part of SAP PP-DD Demand-Driven Replenishment, which is a system designed to help companies manage their inventory levels more efficiently. It uses demand forecasting and replenishment orders to ensure that the inventory levels remain within an acceptable range.