1. SAP Glossary
  2. Supply Network Collaboration
  3. days' supply


What is 'days' supply' in SAP SCM-ICH - Supply Network Collaboration?


days' supply - Overview

  • Component: SCM-ICH

  • Component Name: Supply Network Collaboration

  • Description: Key figure that displays how long the 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.


days' supply - Details


  • Key Concepts: Days' supply is a term used in SAP Supply Chain Management (SCM) Inventory Collaboration Hub (ICH) to measure the amount of inventory available for a particular product. It is calculated by dividing the total inventory of a product by the average daily demand for that product. This metric helps to determine the amount of inventory needed to meet customer demand.
    How to use it: In SAP SCM-ICH, days' supply can be used to monitor inventory levels and ensure that there is enough stock available to meet customer demand. It can also be used to identify potential supply chain issues, such as overstocking or understocking, and take corrective action.
    Tips & Tricks: When calculating days' supply, it is important to consider factors such as seasonality and customer demand patterns. This will help ensure that the correct amount of inventory is available at all times. Additionally, it is important to monitor days' supply on a regular basis in order to identify any potential issues before they become a problem.
    Related Information: Days' supply is closely related to other metrics such as safety stock and reorder point. Safety stock is the amount of inventory that should be kept on hand in order to prevent stockouts, while reorder point is the level at which new orders should be placed in order to maintain desired inventory levels.

    Already have an account? Login here!





days' supply - Related SAP Terms

Rating
ERPlingo simplifies finding the accurate answers to SAP message errors. I now use every week. A must have tool for anyone working with SAP! Highly recommended!
Rate 1
Kent Bettisworth
Executive SAP Consultant