What is target days of supply in SAP SRD-BC-TLS-DTM - CRO-Data Migration?

SAP Term: target days of supply

• Component: SRD-BC-TLS-DTM

• Component Name: CRO-Data Migration

• Description: A number of days that is defined to ensure a sufficient days' supply for a product. The target days' supply is evaluated within consumption-based procurement. The reorder point procedures in Production Planning and Detailed Scheduling can be used for this evaluation. Procurement proposals can be created automatically during planning to achieve the target days' supply if the threshold value for the days' supply, the reorder days' supply, is not reached.

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• Key Concepts: 
  Target days of supply is a term used in SAP to refer to the number of days of inventory that a company should have on hand in order to meet customer demand. It is calculated by dividing the total inventory value by the average daily sales. This number is then used to determine how much inventory should be ordered and when it should be ordered. 
  
  How to use it: 
  In order to use target days of supply, a company must first calculate their average daily sales. This can be done by taking the total sales for a given period and dividing it by the number of days in that period. Once this number is determined, the total inventory value can be divided by the average daily sales to get the target days of supply. 
  
  Tips & Tricks: 
  It is important to remember that target days of supply is only an estimate and should not be taken as an absolute number. Companies should also take into account other factors such as seasonality and customer demand when determining their target days of supply. 
  
  Related Information: 
  The SRD-BC-TLS-DTM CRO-Data Migration component in SAP is used to help companies manage their inventory and ensure that they have the right amount of stock on hand at all times. This component can help companies track their inventory levels, set up alerts for when stock levels are low, and generate reports on inventory levels.