What is 'demand over replenishment lead time' in SAP SCM-APO-SPP - Service Parts Planning?

demand over replenishment lead time - Overview

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Amount that is consumed during the replenishment lead time.

demand over replenishment lead time - Details

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  Key Concepts: 
  Demand over Replenishment Lead Time (DRLT) is a concept used in SAP's Service Parts Planning (SPP) component of Advanced Planning and Optimization (APO). It is used to determine the optimal order quantity for a given part or service. DRLT is calculated by dividing the total demand for a part or service over a given period of time by the replenishment lead time for that part or service. 
  
  How to use it: 
  DRLT can be used to determine the optimal order quantity for a part or service. To do this, the total demand for the part or service must be known, as well as the replenishment lead time. The replenishment lead time is the amount of time it takes for an order to be received and processed. Once these two values are known, DRLT can be calculated by dividing the total demand by the replenishment lead time. 
  
  Tips & Tricks: 
  When calculating DRLT, it is important to consider any seasonal fluctuations in demand that may occur. This will ensure that the optimal order quantity is determined accurately. Additionally, it is important to consider any external factors that may affect the replenishment lead time, such as supplier availability or delivery times. 
  
  Related Information: 
  DRLT is closely related to other concepts such as safety stock and reorder point. Safety stock is an additional amount of inventory