What is competing demand in SAP SCM-IBP - Integrated Business Planning?

SAP Term: competing demand

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: An order or forecast that is competing with other orders or forecasts for order fulfillment. The competing orders or forecasts have similar requirements or attributes such as material, location, or segments.

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• Key Concepts: 
  Competing demand is a term used in SAP's Integrated Business Planning (IBP) module. It refers to the situation when two or more demand sources are competing for the same resources. This can occur when there are multiple customers, products, or channels that require the same resources. In this situation, IBP helps to identify and prioritize the demands in order to optimize the use of resources. 
  
  How to Use It: 
  In order to use competing demand in IBP, you must first identify the different demand sources and their respective requirements. Once these have been identified, you can then use IBP's optimization algorithms to prioritize the demands and allocate resources accordingly. This will help ensure that all demands are met while also optimizing resource utilization. 
  
  Tips & Tricks: 
  When using competing demand in IBP, it is important to consider the long-term implications of your decisions. For example, if you prioritize one demand over another, it may have a negative impact on future demand or resource availability. Therefore, it is important to consider all potential scenarios before making any decisions. 
  
  Related Information: 
  IBP's competing demand feature is closely related to its supply chain optimization capabilities. By using both features together, you can ensure that your supply chain is optimized for both current and future demands. Additionally, IBP also offers features such as inventory optimization and demand forecasting which can help you better manage competing demands.