What is target stock level in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: target stock level

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Represents a stock level that should be reached through planning in order to smooth out production and cover sporadic requirements.

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• Key Concepts: 
  Target stock level is a key concept in SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) component. It is the desired inventory level of a particular item that is maintained in order to meet customer demand. The target stock level is determined by taking into account the lead time, safety stock, and forecasted demand for the item. 
  
  How to use it: 
  The target stock level can be set in the SAP system by entering the desired inventory level for each item. This can be done manually or through an automated process. Once the target stock level is set, the system will automatically adjust the production plan to ensure that the desired inventory level is maintained. 
  
  Tips & Tricks: 
  It is important to keep in mind that the target stock level should be set based on the lead time, safety stock, and forecasted demand for each item. Setting an unrealistic target stock level can lead to overproduction or underproduction of items, resulting in lost profits or customer dissatisfaction. 
  
  Related Information: 
  For more information on target stock levels and other concepts related to SAP's Production Planning and Detailed Scheduling component, please refer to SAP's official documentation.