What is EOQ period in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: EOQ period

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Time period for which the economic order quantity EOQ of a location product suffices according to planning.

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• Key Concepts: 
  EOQ period stands for Economic Order Quantity period. It is a time interval used in Service Parts Planning (SPP) within SAP Advanced Planning and Optimization (APO). The EOQ period is used to determine the optimal order quantity for a given part or service. This helps to minimize inventory costs while ensuring that the right amount of parts or services are available when needed. 
  
  How to use it: 
  In SAP APO, the EOQ period is set up in the planning book. The EOQ period can be set up as a fixed value or as a variable value. If it is set up as a fixed value, the same order quantity will be used for all parts or services. If it is set up as a variable value, the order quantity will be determined based on the demand for each part or service. 
  
  Tips & Tricks: 
  When setting up the EOQ period, it is important to consider the lead time of each part or service. This will help ensure that the right amount of parts or services are available when needed. It is also important to consider any seasonal fluctuations in demand when setting up the EOQ period. 
  
  Related Information: 
  For more information on setting up the EOQ period in SAP APO, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide more detailed information on Service Parts Planning and how to use it effectively.