What is inventory obsolescence in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: inventory obsolescence

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Product that fulfils the following conditions: The product is a service part in a product that you no longer produce and whose mandatory retention period has elapsed. The demand for this product is below a certain limit level.

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• Key Concepts: 
  Inventory obsolescence is a term used in SAP SCM-APO-SPP Service Parts Planning to describe the process of managing inventory that has become outdated or obsolete. This process involves identifying and disposing of inventory that is no longer needed or has become too costly to maintain. It also involves forecasting future demand for parts and components to ensure that the right amount of inventory is available at the right time. 
  
  How to use it: 
  Inventory obsolescence can be managed in SAP SCM-APO-SPP Service Parts Planning by setting up rules and parameters for the system to follow. These rules can include setting a minimum stock level, setting a maximum stock level, and setting a reorder point. The system will then automatically adjust the inventory levels based on these parameters. Additionally, the system can be used to forecast future demand for parts and components, allowing for more accurate inventory management. 
  
  Tips & Tricks: 
  When managing inventory obsolescence in SAP SCM-APO-SPP Service Parts Planning, it is important to keep an eye on the inventory levels and adjust them as needed. Additionally, it is important to review the forecasted demand regularly to ensure that the right amount of inventory is available at the right time. 
  
  Related Information: 
  Inventory obsolescence is closely related to other concepts such as inventory turnover, stock replenishment, and demand forecasting. Understanding these concepts can help improve the accuracy of inventory management in SAP SCM-APO-SPP Service Parts Planning. Additionally, understanding how these concepts interact with each other can help improve overall supply chain efficiency.