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

SAP Term: undercoverage

• Component: SCM-IBP-DDP

• Component Name: IBP Demand Driven Planning

• Description: A setting that allows stock to be filled during each run to below the top of green as a consequence of lot size, but not below the top of yellow.

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• Key Concepts: 
  Undercoverage is a term used in SAP's IBP Demand Driven Planning (DDP) component. It is a measure of the difference between the actual demand and the forecasted demand for a given period. Undercoverage occurs when the actual demand exceeds the forecasted demand, resulting in a shortage of supply. 
  
  How to use it: 
  Undercoverage can be used to identify potential supply chain issues and to help plan for future demand. It can be used to adjust forecasts and to ensure that there is enough supply to meet customer demand. It can also be used to identify areas where additional resources may be needed to meet customer demand. 
  
  Tips & Tricks: 
  When using undercoverage, it is important to consider both short-term and long-term trends in order to accurately forecast future demand. Additionally, it is important to consider external factors such as seasonality, economic conditions, and customer preferences when forecasting future demand. 
  
  Related Information: 
  Undercoverage is closely related to overcoverage, which occurs when the forecasted demand exceeds the actual demand. Both undercoverage and overcoverage can have an impact on supply chain performance and should be monitored closely. Additionally, both undercoverage and overcoverage can be used to identify areas where additional resources may be needed or where resources may need to be reallocated in order to meet customer demand.