What is expected lost demand in SAP SCM-IBP-INV - Inventory?

SAP Term: expected lost demand

• Component: SCM-IBP-INV

• Component Name: Inventory

• Description: The calculated lost sales quantity expected, given current inventory plans and demand distribution.

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• Key Concepts: 
  Expected Lost Demand (ELD) is a term used in SAP's Inventory Optimization component of the Supply Chain Management suite. It is a measure of the expected demand that will not be met due to insufficient inventory levels. ELD is calculated by taking into account the current inventory levels, forecasted demand, and safety stock levels. 
  
  How to use it: 
  ELD can be used to identify potential inventory shortages and plan for additional inventory purchases or production runs. It can also be used to identify areas where inventory levels can be reduced without impacting customer service levels. 
  
  Tips & Tricks: 
  ELD should be monitored on a regular basis to ensure that inventory levels are sufficient to meet customer demand. Additionally, it is important to consider other factors such as lead times and supplier reliability when determining the appropriate level of safety stock. 
  
  Related Information: 
  ELD is closely related to other terms such as safety stock, forecast accuracy, and service level. Understanding how these terms interact with each other can help you better manage your inventory levels and ensure customer satisfaction.