Procurement AI

v1.0.0

Procurement AI

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Glossary

Key terms and definitions used throughout the Procurement AI Cockpit.

ADC (Average Daily Consumption)

The weighted average of historical consumption over the configured lookback period. Used to project future stock levels and calculate coverage days.

Metrics

Batch ID

Unique identifier for a data ingestion batch from SAP. Links fact tables to their source data extract.

System

Coverage Days

How many days of demand the CURRENT physical stock can cover. Formula: Unrestricted Stock ÷ ADC. Note: This does NOT include Open POs (stock in transit). Use this to understand your immediate inventory position.

Metrics

Days to Safety Breach

Number of days until stock drops below the safety stock level, INCLUDING Open POs (stock in transit). Uses daily simulation with requirements. This is more optimistic than Coverage Days because it considers incoming orders.

Metrics

Days to Stockout

Number of days until stock reaches zero, INCLUDING Open POs (stock in transit). Uses daily simulation with planned requirements. IMPORTANT: This is NOT the same as Coverage Days. Coverage Days = current stock only. Days to Stockout = current stock + Open POs. Example: If you have 8 Coverage Days but 500 units arriving soon, Days to Stockout could be 24+ days.

Metrics

Delta / Change Detection

The system compares current run data with the previous run to detect significant changes in stock levels, supply buckets, risk metrics, or recommendations.

System

GR Processing Time

Goods Receipt processing time in days. Time from physical arrival at the plant until stock is available in the system.

Lead Times

Horizon Weeks

Planning horizon in weeks. Defines how far into the future the system projects stock and analyzes time buckets.

Policy

Impact Level

Severity of a detected change: CRIT (critical), WARN (warning), or INFO (informational).

System

Minimum Order Quantity (MOQ)

Smallest order quantity allowed. Comes from SAP min_lot_size (ZCOVRM) or rounding_value (ZPRM). The effective MOQ is the larger of these two values. Recommendations will be rounded up to at least this amount.

Policy

Open PO Qty (Open Purchase Orders)

Quantity already ordered from suppliers but not yet received. This stock is "in transit" and is included in Days to Stockout/Breach calculations but NOT in Coverage Days. Critical for understanding the true supply situation.

Data

Override Policy

Item-specific policy that takes precedence over default category rules. Created when an item needs different planning parameters.

Policy

Planned Delivery Time

Days from order placement to delivery at the plant. Sourced from SAP master data (ZPRM).

Lead Times

Policy Default

Planning parameters applied to items based on scope (source, plant, supplier, purchasing group). Most specific scope wins.

Policy

Production Lead Time

Days required for the supplier to produce/prepare the goods before shipping.

Lead Times

Purchasing Group

Organizational unit responsible for procurement activities. Used to assign items to buyers.

Organization

Recommendation

Calculated order quantity and timing to bring stock up to target coverage levels.

Output

Risk Level / Severity

Overall risk assessment: CRITICAL (stockout ≤14 days), WARNING (≤28 days), or OK (>28 days).

Metrics

Rounding Value

Order quantities are rounded UP to multiples of this value (e.g., pallet quantities). Sourced from SAP ZPRM. Example: If rounding_value = 24,000, recommendations will be 24,000, 48,000, 72,000, etc.

Policy

Run ID

Unique identifier for a processing run. All calculations within a run are based on the same data snapshot.

System

Safety Stock

Minimum stock level to maintain as a buffer against demand variability. Calculated as: ADC × Safety Stock Days.

Metrics

Safety Stock Days

Number of days of consumption to keep as safety buffer. Defined in the policy.

Policy

Snooze / Alert Suppression

Feature to temporarily hide items from critical alerts. Useful for dormant items, seasonal products, or known issues. Snoozed items auto-reactivate on CRITICAL deltas or when duration expires.

System

Snooze Reason

Category explaining why an item was snoozed: DORMANT (no activity), SEASONAL (off-peak), PROMO_EXPECTED (awaiting event), MANUAL (reviewed), or OTHER.

System

Target Coverage Days

Desired days of stock to maintain after replenishment. Used to calculate recommendation quantity.

Policy

Time Bucket

Weekly period in the planning horizon. Contains aggregated supply data (PRs, POs) from SAP ZPRM.

Data

Transport Lead Time

Days required to ship goods from supplier to plant.

Lead Times

Unrestricted Stock

Stock available for consumption. Excludes blocked, quality inspection, or reserved quantities.

Data

ZCOVRM

SAP report containing coverage data: stock levels, consumption history, and future requirements.

SAP

ZPRM

SAP report containing material master data and time bucket quantities (PRs, POs, planned orders).

SAP
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Quick Tip

Throughout the application, hover over the help icons (?) next to field labels to get quick definitions without leaving the page.