What is lag in SAP SCM-IBP-DM - Demand?

SAP Term: lag

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: The time difference between the period when a forecast is calculated and the period that the forecast is calculated for. For example, if a forecast for week 12 is calculated in week 3, then the lag is 9.

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• Key Concepts: 
  Lag is a term used in SAP's Supply Chain Management - Integrated Business Planning - Demand Planning (SCM-IBP-DM) component. It is a time period that is used to represent the amount of time between when a demand signal is received and when the corresponding supply response is made. For example, if a customer places an order for a product, the lag would be the amount of time it takes for the supplier to fulfill that order. 
  
  How to use it: 
  In SCM-IBP-DM Demand Planning, lag can be used to determine the amount of time it takes for a demand signal to be received and for the corresponding supply response to be made. This can help companies plan their supply chain operations more effectively and efficiently. For example, if a company knows that it takes two weeks for an order to be fulfilled, they can plan their production and inventory accordingly. 
  
  Tips & Tricks: 
  When setting up lag in SCM-IBP-DM Demand Planning, it is important to consider the different types of lags that may be present in the supply chain. These include lead times, replenishment times, and delivery times. It is also important to consider any external factors that may affect the lag such as weather or transportation delays. 
  
  Related Information: 
  Lag is closely related to lead time, which is the amount of time it takes for a product or service to be delivered from the supplier to the customer. Lead time can also be used in SCM-IBP-DM Demand Planning to help companies plan their supply chain operations more effectively and efficiently.