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

reorder days' supply - Overview

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Threshold value for the days' supply of a location product, below which procurement proposals should be created for the location product. The reorder days' supply is evaluated within consumption-based procurement. The reorder point procedures in can be used for this evaluation.

reorder days' supply - Details

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  Key Concepts: 
  Reorder days' supply is a term used in SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) component. It is a measure of the number of days' worth of inventory that should be kept on hand to meet customer demand. This number is determined by taking into account the lead time for ordering new inventory, the expected demand for the product, and the safety stock that should be kept on hand. 
  
  How to use it: 
  Reorder days' supply can be used to determine the optimal amount of inventory to keep on hand. This number can then be used to set up reorder points and reorder quantities in SAP's Production Planning and Detailed Scheduling component. Reorder points are the minimum amount of inventory that must be kept on hand before a new order is placed, while reorder quantities are the amount of inventory that should be ordered when a reorder point is reached. 
  
  Tips & Tricks: 
  When setting up reorder points and reorder quantities, it is important to consider factors such as seasonality, customer demand, and lead times. Additionally, it is important to keep in mind that reorder days' supply should be adjusted periodically to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  For more information on setting up reorder points and reorder quantities in SAP's Production Planning and Detailed Scheduling component, please refer to