What is proposal horizon in SAP SCM-ICH-IMO - Inventory Monitor?

SAP Term: proposal horizon

• Component: SCM-ICH-IMO

• Component Name: Inventory Monitor

• Description: User-defined time period for which the system suggests planned receipts in the SMI Monitor. The system calculates the planned receipts for the periods in the proposal horizon using a reorder point method.

Smart SAP Assistant

• Key Concepts: 
  Proposal horizon is a feature of the Inventory Monitor component of SAP SCM-ICH-IMO. It is used to determine the optimal order quantity for a given item in order to maintain the desired inventory level. The proposal horizon is the time period over which the inventory monitor will consider the demand for an item when calculating the optimal order quantity. 
  
  How to use it: 
  The proposal horizon can be set in the Inventory Monitor configuration. The user can specify a start date and end date for the proposal horizon, as well as a time interval for which the demand will be considered. The user can also specify whether or not to include future demand in the calculation. 
  
  Tips & Tricks: 
  It is important to set an appropriate proposal horizon in order to ensure that the optimal order quantity is calculated accurately. If the proposal horizon is too short, then it may not take into account all of the demand for an item, resulting in an inaccurate calculation. If the proposal horizon is too long, then it may include too much demand, resulting in an overly conservative calculation. 
  
  Related Information: 
  The proposal horizon is closely related to other features of the Inventory Monitor, such as safety stock and reorder point. Safety stock and reorder point are used to determine when an item should be reordered, while the proposal horizon determines how much should be ordered.