What is days of supply in SAP SCM-APO-ANA - APO Analytics?

SAP Term: days of supply

• Component: SCM-APO-ANA

• Component Name: APO Analytics

• Description: The number of workdays for which future demands should be taken into account when defining safety stock.

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• Key Concepts: 
  Days of supply is a metric used in SAP's Advanced Planner and Optimizer (APO) Analytics component to measure the amount of inventory on hand relative to the amount of inventory needed to meet customer demand. It is calculated by dividing the total amount of inventory on hand by the average daily demand for that item. 
  
  How to use it: 
  Days of supply can be used to help determine the optimal inventory levels for a given item. By monitoring days of supply, businesses can ensure that they have enough inventory on hand to meet customer demand without having too much excess inventory. 
  
  Tips & Tricks: 
  It is important to note that days of supply is an average measure and does not take into account seasonal fluctuations in demand. Therefore, it is important to monitor days of supply over time in order to ensure that inventory levels are appropriate for the current demand. 
  
  Related Information: 
  For more information about days of supply and other metrics used in SAP's APO Analytics component, please refer to the official SAP documentation.