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

SAP Term: days' supply

• 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.

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• 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.