What is exposure period in SAP SCM-IBP-INV - Inventory?

SAP Term: exposure period

• Component: SCM-IBP-INV

• Component Name: Inventory

• Description: A period that includes the time between two regular reviews of the inventory of a product period between reviews plus the time until the product is refilled at a location lead time, specified in weeks. During the exposure period, product inventory is subject exposed to risks, such as late shipment or unexpected demand.

Smart SAP Assistant

• Key Concepts: 
  Exposure period is a concept used in Inventory Optimization in SAP SCM-IBP-INV. It is the time period during which a certain inventory level is exposed to the market. This period is used to determine the optimal inventory level for a given product or service. 
  
  How to use it: 
  The exposure period is used to calculate the optimal inventory level for a given product or service. The exposure period is determined by the demand forecast and the lead time of the product or service. The optimal inventory level is then calculated based on the demand forecast and the lead time. 
  
  Tips & Tricks: 
  It is important to ensure that the exposure period is set correctly in order to get an accurate calculation of the optimal inventory level. It is also important to consider any seasonal fluctuations in demand when setting the exposure period. 
  
  Related Information: 
  The optimal inventory level can also be calculated using other methods such as safety stock and reorder point calculations. It is important to consider all of these methods when determining the optimal inventory level for a given product or service.