What is threshold in SAP SRM-CM - SRM Category Management?

SAP Term: threshold

• Component: SRM-CM

• Component Name: SRM Category Management

• Description: A value assigned to an indicator for monitoring purposes; it represents an acceptable range of variance. When the actual value for an indicator is above or below the designated threshold, an alert is triggered.

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• Key Concepts: 
  Thresholds in SAP SRM-CM Category Management are used to define the minimum and maximum values for a given category. This helps to ensure that the category is managed within a certain range of values. Thresholds can be set for both quantitative and qualitative categories. 
  
  How to use it: 
  To set a threshold in SAP SRM-CM Category Management, first select the category you want to set a threshold for. Then, enter the minimum and maximum values for the category. Once you have entered the values, click “Save” to save your changes. 
  
  Tips & Tricks: 
  When setting thresholds in SAP SRM-CM Category Management, it is important to consider the impact of the thresholds on the overall performance of the category. For example, if you set a threshold too low, it may limit the ability of the category to reach its full potential. 
  
  Related Information: 
  For more information on setting thresholds in SAP SRM-CM Category Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide helpful tips and tricks for setting thresholds in SAP SRM-CM Category Management.