What is days' supply in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: days' supply

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: The system calculates the days' supply as follows: stock is divided by daily demand. If the stock or the demand is zero, the days' supply is calculated as 9999.

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• Key Concepts: 
  Days' supply is a term used in Supply Network Planning (SNP) within SAP. 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. 
  
  How to use it: 
  Days' supply can be used to determine the amount of inventory that needs to be maintained in order to meet customer demand. This can help organizations plan their inventory levels and ensure that they have enough stock on hand to meet customer needs. 
  
  Tips & Tricks: 
  It is important to keep in mind that days' supply is an estimate and should not be used as an exact measure of inventory levels. Additionally, it is important to consider other factors such as seasonality and lead times when determining inventory levels. 
  
  Related Information: 
  Days' supply is related to other terms such as safety stock, reorder point, and lead time. Safety stock is the amount of inventory that should be kept on hand in order to prevent stockouts, while reorder point is the level at which new orders should be placed. Lead time is the amount of time it takes for new orders to arrive after they have been placed.