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Former Member

SOP

Dear Sir,

In SOP i understood about Sales, production but what done stock level, target stock level, day's supply and target day supply means.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 30, 2012 at 05:35 AM

    Hello Deepali,

    Please look for more details in below link:

    http://help.sap.com/saphelp_40b/helpdata/en/a5/63212143a211d189410000e829fbbd/content.htm

    http://help.sap.com/saphelp_40b/helpdata/en/1a/0e3b7a539911d1898b0000e8322d00/content.htm

    Definitions for the same are:

    Stock Level:

    Specifies the stock level at the end of each period. This is the stock level that results from the planned sales and/or production quantities.

    The stock level is calculated by the system. You cannot overwrite it.

    Target Stock Level:If you select this strategy, the system calculates the production quantities needed to achieve the target stock levels

    Day's Supply:

    Specifies the range of coverage in days.

    The days' supply for a period is the stock level divided by the average requirements, where average requirements = sales/number of workdays.

    Days' supplies are calculated by the system. You cannot overwrite them.

    Target Day's Supply:the system calculates the production quantities required to achieve the target days' supplies

    Hope this helps you

    Regards

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