1. SAP Glossary
  2. Material Requirements Planning
  3. stock days' supply


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


SAP Term: stock days' supply


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  • Key Concepts: 
    Stock Days' Supply is a term used in SAP's Material Requirements Planning (MRP) component. It is a measure of the amount of inventory that is available to meet customer demand. It is calculated by dividing the total stock on hand by the average daily demand. 
    
    How to use it: 
    Stock Days' Supply can be used to determine the amount of inventory that should be kept on hand in order to meet customer demand. It can also be used to identify potential problems with inventory levels, such as overstocking or understocking. 
    
    Tips & Tricks: 
    It is important to keep an accurate record of stock levels in order to accurately calculate Stock Days' Supply. Additionally, it is important to consider seasonal fluctuations in demand when calculating Stock Days' Supply. 
    
    Related Information: 
    Stock Days' Supply is related to other terms such as safety stock and reorder point. Safety stock is the amount of inventory that should be kept on hand in order to prevent stockouts, while reorder point is the level at which new orders should be placed in order to maintain desired inventory levels.
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