What is understock in SAP SCM-FRE - Forecasting and Replenishment?

SAP Term: understock

• Component: SCM-FRE

• Component Name: Forecasting and Replenishment

• Description: Situation in which the stock for a certain location product falls below a predefined minimum.

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• Key Concepts: 
  Understock is a term used in SAP's Forecasting and Replenishment (SCM-FRE) component. It is a situation where the inventory of a product is lower than the forecasted demand. This can lead to stockouts, which can have a negative impact on customer satisfaction and sales. 
  
  How to use it: 
  Understock can be monitored in SAP's Forecasting and Replenishment component. The system will alert users when the inventory of a product is lower than the forecasted demand. This allows users to take action to replenish the stock before it runs out. 
  
  Tips & Tricks: 
  It is important to monitor understock regularly in order to prevent stockouts. It is also important to ensure that the forecasted demand is accurate, as this will help to prevent understock situations. 
  
  Related Information: 
  Understock is related to overstock, which is a situation where the inventory of a product is higher than the forecasted demand. Both understock and overstock can have a negative impact on customer satisfaction and sales, so it is important to monitor both situations closely.