Days Inventory Held

 

The analytical app displays the Key Performance Indicator (KPI) Days Inventory Held. You can determine how long your company was able to manage with the average stock in the past, based on a specific time frame. This KPI informs warehouse managers about a material's speed of consumption per day. Based on the analysis of consumption information from the past, warehouse managers are able to make conclusions about possible consumption scenarios in the future.

Note that Days Inventory Held is the reciprocal value of Inventory Turnover.

Key Features

  • Calculation rule:

    Days Inventory Held is the relation between the average valuated stock value of the specific time frame divided by the average consumption per day.

    The average consumption per day is the total consumption divided by the number of days within a specific time frame.

    The point in time, in this case, the day on which a business process took place, is important to determine its share in the calculation result. This includes the calculation of average values and quantities.

    To get a realistic calculation of averages for all average inventories, a specific weighting approach is used in the Inventory Management KPIs: for the calculation of each business process, such as a goods receipt, the posting date is considered in relation to the number of days within the specific time frame. The posting date of the business process itself is considered with half a day.

    Example Example

    The weighting factor for a goods receipt that increases the stock at the end of the specific time frame is lower than for a goods receipt that was posted at the beginning of the specific time frame.

    End of the example.
  • Generic drill down:

    You can use the following measure: DaysInventoryHeld.

    For more information about available filters, see App Implementation: Days Inventory Held.

Technical Requirements

The following products are needed to run this analytical application:

Component

Technical Name

SAP HANA Live

SAP HANA Live SPS 7, revision 70 or higher

SAP HANA Live Product (Software Component)

SAP HANA Live for ERP (HCO_HBA_ECC)

KPI Modeler

SAP Smart Business Component for KPI Modeling 1.0

Virtual Data Model (VDM)

VDM for SAP ERP (package sap.hba.r.ecc)

SAP Smart Business Product

SAP Smart Business for ERP 1.0

UI Component for Front-End Server

Smart Business Content for ERP 100

For more information about the technical requirements for your system landscape to enable SAP Smart Business applications, see Installation.

Component for Customer Messages

Analytics based on HANA DB (MM-IM-HBA)