What is receipt days' supply in SAP PP-MRP - Material Requirements Planning?

SAP Term: receipt days' supply

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The receipt days' supply displays how many days' requirements are covered by a material. The current plant stock and certain receipts to be defined are included in the calculation. The receipts days' supply allows the MRP controller to see whether action must be taken for a particular material, that is, whether quantities must be re-planned or not.

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• Key Concepts: 
  Receipt days' supply is a term used in SAP's Material Requirements Planning (MRP) component. It is a measure of the number of days' worth of material that is expected to be received from suppliers. This number is calculated by dividing the total amount of material expected to be received by the average daily usage rate. 
  
  How to use it: 
  Receipt days' supply can be used to determine the amount of material that needs to be ordered from suppliers. This number can then be compared to the current inventory levels to determine if additional orders need to be placed. Additionally, it can be used to plan for future production needs and ensure that there is enough material on hand for production. 
  
  Tips & Tricks: 
  It is important to keep track of the receipt days' supply for each material in order to ensure that there is enough material on hand for production. Additionally, it is important to monitor changes in the average daily usage rate as this can affect the amount of material that needs to be ordered from suppliers. 
  
  Related Information: 
  Receipt days' supply is closely related to safety stock, which is an additional amount of material that is kept on hand in case of unexpected changes in demand or supply. Additionally, it is related to lead time, which is the amount of time it takes for a supplier to deliver materials after an order has been placed.