What is 'allocation quantity' in SAP SCM-IBP - Integrated Business Planning?

allocation quantity - Overview

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: The quantity of material allocated to a particular entity such as region or customer for a certain period of time.

allocation quantity - Details

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  Key Concepts: 
  Allocation quantity is a term used in SAP's Integrated Business Planning (IBP) component of Supply Chain Management (SCM). It is the amount of a product that is allocated to a particular customer or location. Allocation quantity is determined by the demand forecast and the available supply. 
  
  How to use it: 
  The allocation quantity can be used to determine how much of a product should be allocated to each customer or location. This helps ensure that the demand for the product is met while also ensuring that there is enough supply to meet the demand. The allocation quantity can also be used to determine how much of a product should be produced in order to meet the demand. 
  
  Tips & Tricks: 
  When setting an allocation quantity, it is important to consider both the demand forecast and the available supply. This will help ensure that the right amount of product is allocated to each customer or location. It is also important to consider any potential changes in demand or supply that could affect the allocation quantity. 
  
  Related Information: 
  The allocation quantity is closely related to other terms such as demand forecasting, supply chain management, and inventory management. Understanding these terms and how they interact with each other can help ensure that the right amount of product is allocated to each customer or location.