What is Inventory Target in SAP SCM-IBP-PLA - Planning Framework?

SAP Term: Inventory Target

• Component: SCM-IBP-PLA

• Component Name: Planning Framework

• Description: Key figure for the inventory that should be available at the end of each period after the demands have been satisfied.

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• Key Concepts: 
  Inventory Target is a component of the SCM-IBP-PLA Planning Framework. It is used to define the desired inventory levels for a given product or product group. The inventory target is used to determine the optimal order quantity and timing for replenishment of inventory. 
  
  How to use it: 
  Inventory Target can be used to set the desired inventory levels for a given product or product group. The inventory target can be set based on factors such as customer demand, lead times, and safety stock levels. The inventory target can also be adjusted over time to reflect changes in customer demand or other factors. 
  
  Tips & Tricks: 
  When setting an inventory target, it is important to consider the lead time for replenishment of inventory. If the lead time is too long, it may be necessary to adjust the inventory target to ensure that there is enough stock on hand to meet customer demand. Additionally, it is important to consider safety stock levels when setting an inventory target. 
  
  Related Information: 
  Inventory Target is closely related to other components of the SCM-IBP-PLA Planning Framework such as Demand Forecasting and Supply Network Planning. It is important to consider how these components interact when setting an inventory target in order to ensure that the desired inventory levels are achieved.