Range of Coverage
The key figure "range of coverage" provides information on the stock level in relation to demand. It informs you how long a stock amount will last given a specific average daily requirement.
A range of coverage analysis allows you to identify materials with excess coverage. You are then able to adjust the stock level to comply with the new usage rate.
The analysis according to range of coverage can be executed for usage and requirements .
The range of coverage for usage is calculated as follows:
current stock
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average usage/day
The range of coverage for requirements value is calculated as follows:
current stock
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average requirement/day