What is target days of supply in SAP PP-MRP - Material Requirements Planning?

SAP Term: target days of supply

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: Target buffer level planned to be available to cover requirements when the stock level falls below the buffer level defined for the safety days of supply safety DOS. The target buffer level is calculated on a daily basis within a specific time period and is available immediately for material coverage. The target DOS is specified as a factor of the current daily requirement. The absolute value for the buffer level is derived from that. For example: Current daily requirement = 100, target DOS = 2, target buffer level =  100 × 2 = 200 The buffer level for the material will be stocked up to 200 as soon as the stock level falls below the defined threshold value for the safety DOS. The target DOS is always greater than the safety DOS.

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• Key Concepts: 
  Target days of supply is a term used in SAP's Material Requirements Planning (MRP) component. It is the number of days of inventory that a company wants to maintain in order to meet customer demand. This number is determined by the company's inventory management strategy and is used to calculate the amount of material that needs to be ordered or produced. 
  
  How to use it: 
  In SAP, target days of supply can be set up in the MRP1 view of the material master record. The target days of supply value is used by the MRP system to calculate the amount of material that needs to be ordered or produced. The system will then generate a purchase requisition or production order for the calculated amount. 
  
  Tips & Tricks: 
  It is important to set an appropriate target days of supply value for each material, as this will affect the amount of material that needs to be ordered or produced. It is also important to review and adjust this value regularly, as customer demand may change over time. 
  
  Related Information: 
  For more information on target days of supply and other MRP concepts, please refer to SAP's official documentation on Material Requirements Planning.