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

SAP Term: target days' supply

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Target value for the days' supply of a location product. The target days' supply is evaluated within consumer-based procurement. The reorder point procedures in can be used for this evaluation. Procurement proposals can be created automatically during planning to achieve the target days' supply if the threshold value for the days' supply, the reorder days' supply, is not reached.

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• Key Concepts: 
  Target days' supply is a key concept in SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) 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 policy and is used to calculate the amount of inventory that needs to be produced or purchased. 
  
  How to use it: 
  The target days' supply can be set in the SAP system by entering the desired number of days into the relevant field. This number will then be used to calculate the amount of inventory that needs to be produced or purchased. The target days' supply can also be adjusted as needed, depending on changes in customer demand or other factors. 
  
  Tips & Tricks: 
  It is important to keep track of changes in customer demand and adjust the target days' supply accordingly. This will ensure that the company has enough inventory on hand to meet customer demand without overstocking or understocking. Additionally, it is important to monitor inventory levels regularly and adjust the target days' supply as needed. 
  
  Related Information: 
  The target days' supply is closely related to other concepts such as safety stock, reorder point, and lead time. Safety stock is the amount of inventory that a company keeps on hand in case of unexpected increases in customer demand. Reorder point is the level at which a company needs to replenish its inventory. Lead time is the amount of time it takes for an order to be received from a supplier. All of these concepts are important for managing inventory levels and ensuring that customer demand is met.