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

SAP Term: inventory planning

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Plans the optimum stock of location products. The inventory balancing service checks to see if it is worth stocking or destocking at a location, and calculates the economic order quantity in combination with the safety stock for each location product.

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• Key Concepts: 
  Inventory planning is a process used to ensure that the right amount of inventory is available at the right time and place. It is a key component of SAP's Supply Chain Management (SCM) Advanced Planning and Optimization (APO) Service Parts Planning (SPP) module. The goal of inventory planning is to minimize inventory costs while ensuring that customer service levels are met. 
  
  How to use it: 
  Inventory planning in SAP's SCM-APO-SPP module is used to determine the optimal inventory levels for each item in a supply chain. It takes into account factors such as demand forecasts, lead times, safety stock levels, and order policies. The system then generates an optimal inventory plan that can be used to manage inventory levels and ensure customer service levels are met. 
  
  Tips & Tricks: 
  When using SAP's SCM-APO-SPP module for inventory planning, it is important to ensure that the demand forecasts are accurate and up-to-date. Additionally, it is important to consider the lead times for each item when determining the optimal inventory levels. 
  
  Related Information: 
  Inventory planning is closely related to other SAP modules such as Demand Planning (DP), Supply Network Planning (SNP), and Production Planning and Detailed Scheduling (PP/DS). These modules can be used in conjunction with SCM-APO-SPP to create an integrated supply chain management system.