What is 'net flow equation' in SAP SCM-IBP-DDP - IBP Demand Driven Planning?

net flow equation - Overview

• Component: SCM-IBP-DDP

• Component Name: IBP Demand Driven Planning

• Description: A calculation that determines the planning status of a buffered item. The net flow is on-hand stock plus on-order stock also referred to as open supply minus unfulfilled qualified actual demand. The net flow equation is also known as the "available stock equation".

net flow equation - Details

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  Key Concepts: 
  Net flow equation is a mathematical equation used in SAP IBP Demand Driven Planning (DDP) to calculate the net flow of a product. It takes into account the demand, supply, and inventory levels of a product to determine the net flow. The equation is used to help companies plan their production and inventory levels more accurately. 
  
  How to use it: 
  The net flow equation is used in SAP IBP DDP to calculate the net flow of a product. It takes into account the demand, supply, and inventory levels of a product to determine the net flow. The equation is used to help companies plan their production and inventory levels more accurately. To use the equation, input the demand, supply, and inventory levels of a product into the equation. The output will be the net flow of that product. 
  
  Tips & Tricks: 
  When using the net flow equation, it is important to ensure that all inputs are accurate and up-to-date. This will ensure that the output of the equation is as accurate as possible. Additionally, it is important to consider other factors such as seasonality when inputting data into the equation. 
  
  Related Information: 
  The net flow equation is just one of many equations used in SAP IBP DDP. Other equations include safety stock calculation, forecast accuracy calculation, and inventory optimization calculation. All of these