What is 'days' supply' in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

days' supply - Overview

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Period of time until stock falls below zero. In APO, you are able to define exactly which categories of stock, receipts, forecasts and requirements are to be taken into account by the system when calculating days' supply. This definition of exactly which categories are to be included in the calculation is referred to as a days' supply type. The system can calculate up to three different days' supply types when you call up the Product view or the Alert Monitor. Days' supply is calculated for each pegging area. The days' supply can for example be specified in seconds, days or weeks. If the demand is zero, the days' supply is calculated as 9999. If stock is zero and there are still requirements to be covered, the days' supply is negative.

days' supply - Details

• 
  Key Concepts: 
  Days' supply is a term used in SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) component. It is a measure of the amount of inventory that is available to meet customer demand. It is calculated by dividing the total inventory on hand by the average daily demand for the item. 
  
  How to use it: 
  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 stock-outs or overstocks. The higher the days' supply, the more inventory is available to meet customer demand. The lower the days' supply, the less inventory is available and stock-outs may occur. 
  
  Tips & Tricks: 
  It is important to monitor days' supply on a regular basis in order to ensure that there is enough inventory available to meet customer demand. If the days' supply is too low, it may be necessary to increase production or purchase additional inventory in order to avoid stock-outs. 
  
  Related Information: 
  Days' supply can be used in conjunction with other metrics such as safety stock and lead time in order to ensure that there is enough inventory available to meet customer demand. Additionally, it can be used to identify potential overstocks and take corrective action if necessary.