What is actual range of coverage in SAP PP-MRP - Material Requirements Planning?

SAP Term: actual range of coverage

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The number of days the warehouse stock of a material is sufficient to cover requirements without taking account of any new receipts. The actual range of coverage corresponds to the safety time. You can define the actual range of coverage as a planned value. The stipulated number of days causes the requirements to be brought forward by precisely this number of days in MRP and procurement proposals suitable for the relevant dates to be generated. This ensures that the planned warehouse stock can cover the requirements that lie within the stipulated number of days.

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• Key Concepts: 
  Actual Range of Coverage (ARC) is a feature in SAP's Material Requirements Planning (MRP) component that allows users to define the range of coverage for a material. This range is used to determine the amount of material that needs to be ordered or produced in order to meet customer demand. The range is based on the material's current stock level, the forecasted demand, and the lead time for ordering or producing the material. 
  
  How to Use It: 
  In order to use the Actual Range of Coverage feature, users must first define the range of coverage for a material. This can be done by entering the minimum and maximum stock levels for the material in the MRP component. Once this is done, MRP will use this range to determine how much of the material needs to be ordered or produced in order to meet customer demand. 
  
  Tips & Tricks: 
  When defining the Actual Range of Coverage for a material, it is important to consider both the current stock level and the forecasted demand. This will ensure that enough of the material is ordered or produced in order to meet customer demand without overstocking. Additionally, it is important to consider the lead time for ordering or producing the material when defining the range of coverage. 
  
  Related Information: 
  For more information on using Actual Range of Coverage in SAP's Material Requirements Planning component, please refer to SAP's official documentation at https://help.sap.com/viewer/product/SAP_ERP_6.0_EHPs_6/6.0/en-US/f3d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b04d8f9a7c2b0/.