What is maximum stock level in SAP PP-MRP - Material Requirements Planning?

SAP Term: maximum stock level

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: An upper-limit for the dynamic safety stock. The maximum stock is calculated using the formula: maximum range of coverage * average daily requirement

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• Key Concepts: 
  Maximum stock level is a term used in SAP's Material Requirements Planning (MRP) component. It is the maximum amount of inventory that a company should keep on hand for a particular item. This level is determined by the company's inventory management policies and is used to ensure that the company does not overstock or understock its inventory. 
  
  How to use it: 
  The maximum stock level is set in the MRP component of SAP. It can be adjusted based on the company's inventory management policies and can be changed as needed. The maximum stock level is used to determine when an order should be placed for additional inventory and when existing inventory should be sold or disposed of. 
  
  Tips & Tricks: 
  It is important to regularly review and adjust the maximum stock level in order to ensure that the company has enough inventory on hand to meet customer demand, but not too much that it results in excess inventory costs. 
  
  Related Information: 
  The maximum stock level is related to other SAP components such as Inventory Management, Warehouse Management, and Production Planning & Control. These components are used to manage the company's inventory and ensure that it meets customer demand.