What is overcoverage in SAP SCM-IBP-DDP - IBP Demand Driven Planning?

SAP Term: overcoverage

• Component: SCM-IBP-DDP

• Component Name: IBP Demand Driven Planning

• Description: A setting that allows stock to be filled during each run to above the top of green as a consequence of lot size.

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• Key Concepts: 
  Overcoverage is a term used in SAP IBP Demand Driven Planning (DDP) to describe the situation when the total supply of a product exceeds the total demand. This can happen when the demand forecast is too low or when the supply is too high. Overcoverage can lead to excess inventory and higher costs. 
  
  How to use it: 
  In SAP IBP DDP, overcoverage can be managed by adjusting the demand forecast or by reducing the supply. The system will then recalculate the supply and demand and provide a new plan that takes into account the changes. This allows for more accurate planning and better inventory management. 
  
  Tips & Tricks: 
  It is important to monitor overcoverage closely as it can lead to excess inventory and higher costs. It is also important to adjust the demand forecast or reduce the supply in a timely manner in order to avoid overcoverage. 
  
  Related Information: 
  SAP IBP DDP provides a range of features that can help manage overcoverage, such as automatic demand forecasting, inventory optimization, and supply chain analytics. These features can help identify potential overcoverage issues before they occur and provide solutions for managing them.