What is minimum days of supply in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: minimum days of supply

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: A threshold value that indicates the lowest level a days of supply key figure is allowed to fall to. The system creates exceptions for the key figure based on this threshold.

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• Key Concepts: 
  Minimum Days of Supply (MDS) is a SAP term used in Supply Chain Planning and Control. It is a measure of the amount of inventory that should be kept on hand to meet customer demand. The MDS is calculated by dividing the total forecasted demand for a given period by the average daily demand for that period. 
  
  How to use it: 
  The MDS can be used to determine the optimal inventory levels for a given product or product line. It can also be used to identify potential supply chain issues, such as stockouts or overstocking. The MDS can be adjusted based on customer demand patterns, seasonality, and other factors. 
  
  Tips & Tricks: 
  It is important to keep in mind that the MDS is only an estimate and should not be used as an absolute measure of inventory levels. Additionally, it is important to consider other factors such as lead times and safety stock when determining optimal inventory levels. 
  
  Related Information: 
  The MDS is closely related to other SAP terms such as safety stock, reorder point, and lead time. Additionally, it is important to consider other factors such as customer demand patterns, seasonality, and supplier reliability when determining optimal inventory levels.