What is confirmed days' supply in SAP SCM-ICH-IMO - Inventory Monitor?

SAP Term: confirmed days' supply

• Component: SCM-ICH-IMO

• Component Name: Inventory Monitor

• Description: A key figure that displays how long the confirmed projected stock of a period would be sufficient to cover the demands of the subsequent periods, if no receipts were to occur in these periods. The days’ supply is specified in days.

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• Key Concepts: 
  Confirmed days' supply is a metric used in the Inventory Monitor component of SAP SCM-ICH-IMO. It is a measure of the number of days that a given inventory item will last, based on the current rate of consumption. It is calculated by dividing the current inventory level by the average daily consumption rate. 
  
  How to use it: 
  The confirmed days' supply metric can be used to help manage inventory levels and ensure that there is enough stock to meet customer demand. It can also be used to identify potential problems with inventory management, such as overstocking or understocking. 
  
  Tips & Tricks: 
  It is important to remember that the confirmed days' supply metric is only an estimate and should not be relied upon as an exact measure of inventory levels. Additionally, it should be used in conjunction with other metrics, such as safety stock levels, to ensure that inventory levels are properly managed. 
  
  Related Information: 
  The Inventory Monitor component of SAP SCM-ICH-IMO also includes other metrics such as safety stock levels, reorder points, and order quantity. These metrics can be used in combination with the confirmed days' supply metric to ensure that inventory levels are properly managed.