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

SAP Term: minimum stock level

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The lower-limit for the dynamic safety stock. The minimum stock level is calculated using the formula: minimum range of coverage * average daily requirement

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• Key Concepts: 
  Minimum stock level is a term used in SAP's Material Requirements Planning (MRP) component. It is the minimum amount of inventory that must be kept in stock to ensure that production and sales requirements are met. The minimum stock level is determined by the MRP system based on the forecasted demand for the material and the lead time for replenishing it. 
  
  How to use it: 
  The minimum stock level can be set in the MRP system by entering the desired quantity of material to be kept in stock. The system will then calculate the necessary replenishment orders to maintain this level of inventory. The replenishment orders can be generated automatically or manually, depending on the settings of the MRP system. 
  
  Tips & Tricks: 
  It is important to set an appropriate minimum stock level for each material, as too low a level can lead to stockouts and too high a level can lead to excess inventory. It is also important to monitor the actual inventory levels and adjust the minimum stock levels accordingly. 
  
  Related Information: 
  The minimum stock level is closely related to other concepts such as safety stock, reorder point, and maximum stock level. It is also important to consider other factors such as lead time, demand variability, and supplier reliability when setting the minimum stock level.