What is safety stock horizon in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: safety stock horizon

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Horizon that is considered by deployment in SNP if the push distribution rule "Push taking the safety stock horizon into account" is being used. The system only confirms planned issues that would have to be covered by safety stock at the source location if the difference between the demand and deploy date is smaller than the safety stock horizon. This means that the system only falls below the safety stock level that was defined in the location product master if the demand to be covered is in the safety stock horizon. The safety stock horizon moves forward with planning.

Smart SAP Assistant

• Key Concepts: 
  Safety stock horizon is a term used in SAP Supply Network Planning (SNP). It is the time period for which safety stock is planned. Safety stock is an inventory buffer that is kept to protect against unexpected demand or supply fluctuations. 
  
  How to use it: 
  In SAP SNP, safety stock horizon is used to determine the amount of safety stock that should be kept in inventory. The safety stock horizon can be set to a specific number of days, weeks, or months. The longer the safety stock horizon, the more safety stock will be kept in inventory. 
  
  Tips & Tricks: 
  When setting the safety stock horizon, it is important to consider the lead time of the product and the expected demand and supply fluctuations. A longer safety stock horizon may be necessary for products with long lead times or high demand and supply fluctuations. 
  
  Related Information: 
  Safety stock is an important part of inventory management and can help protect against unexpected demand or supply fluctuations. Other inventory management techniques such as reorder points and economic order quantity can also be used to manage inventory levels.