What is top of green in SAP SCM-IBP-DDP - IBP Demand Driven Planning?

SAP Term: top of green

• Component: SCM-IBP-DDP

• Component Name: IBP Demand Driven Planning

• Description: Sum of the green, yellow, and red zones.

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• Key Concepts: 
  Top of Green is a term used in SAP IBP Demand Driven Planning (DDP). It is the point at which the demand plan is considered to be “green” or “in balance”. This means that the demand plan is in line with the supply plan and there are no discrepancies between the two. 
  
  How to use it: 
  In order to reach the top of green, users must ensure that the demand plan and supply plan are in sync. This can be done by adjusting the demand plan to match the supply plan, or vice versa. Additionally, users can adjust parameters such as safety stock levels, lead times, and inventory targets to ensure that the plans are in balance. 
  
  Tips & Tricks: 
  When adjusting parameters to reach the top of green, it is important to consider how changes will affect other parts of the supply chain. For example, increasing safety stock levels may help reach the top of green but could also lead to higher inventory costs. 
  
  Related Information: 
  The concept of top of green is closely related to SAP IBP’s Demand Driven MRP (DDMRP) methodology. DDMRP is a methodology for managing inventory and supply chain operations that focuses on balancing demand and supply plans.