What is 'EOQ/SFT calculation' in SAP SCM-APO-SPP - Service Parts Planning?

EOQ/SFT calculation - Overview

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Combined calculation of the economic order quantity and the safety stock in order to both optimize the ordering and storage costs, and to achieve a high target service level.

EOQ/SFT calculation - Details

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  Key Concepts: 
  EOQ/SFT calculation is a feature of SAP's SCM-APO-SPP Service Parts Planning component. It stands for Economic Order Quantity/Safety Stock Factor calculation and is used to determine the optimal order quantity and safety stock factor for a given item. This calculation helps to ensure that the right amount of inventory is available at the right time, while also minimizing costs associated with ordering and carrying inventory. 
  
  How to use it: 
  The EOQ/SFT calculation can be accessed through the SAP system by navigating to the SCM-APO-SPP Service Parts Planning component. Once there, users can enter the item number, demand rate, lead time, and other relevant information into the system. The system will then calculate the optimal order quantity and safety stock factor for that item. 
  
  Tips & Tricks: 
  When using the EOQ/SFT calculation, it is important to ensure that all relevant information is entered accurately. This includes the item number, demand rate, lead time, and any other relevant information. Additionally, it is important to consider any seasonal or cyclical fluctuations in demand when entering data into the system. 
  
  Related Information: 
  For more information on EOQ/SFT calculation and other features of SAP's SCM-APO-SPP Service Parts Planning component, please refer to SAP's official documentation or contact your local SAP representative.