What is 'average-demand horizon' in SAP SCM-ICH-IMO - Inventory Monitor?

average-demand horizon - Overview

• Component: SCM-ICH-IMO

• Component Name: Inventory Monitor

• Description: User-defined time period for which the system calculates average demands in the SMI Monitor.

average-demand horizon - Details

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  Key Concepts: 
  Average-demand horizon is a feature of the Inventory Monitor component of SAP SCM-ICH-IMO. It is used to calculate the average demand for a certain item over a given period of time. This helps to determine the optimal inventory levels for that item. 
  
  How to use it: 
  To use the average-demand horizon feature, you must first enter the item's demand data into the Inventory Monitor. This data should include the quantity of items sold over a given period of time. Once this data is entered, the average-demand horizon will calculate the average demand for that item over that period of time. 
  
  Tips & Tricks: 
  It is important to ensure that the demand data entered into the Inventory Monitor is accurate and up-to-date. This will ensure that the average-demand horizon calculation is accurate and can be used to determine optimal inventory levels. 
  
  Related Information: 
  The average-demand horizon feature can be used in conjunction with other features of the Inventory Monitor, such as safety stock calculations and reorder point calculations, to help determine optimal inventory levels for an item.