Stock Coverage in BW4HANA

● For a given Stock at a certain point in time and a time series of demand values, one
frequent question is for how many days the stock covers the demand.

● This key performance indicator (KPI) is Stock Coverage. The solution needs to describe
how a stock coverage is defined in a query processed in an OLAP system like SAP BW.

● The solution is to define the stock coverage as a special key figure in the BW metadata.

● A stock coverage key figure calculates the number of periods for which a stock covers the
planned or expected demand.

● Example: The current stock is 10 units. The expected demand for the next four weeks is 2
units, 3 units, 4 units, 2 units. The current stock will, therefore, last for another 3 1/2 weeks.

To create the stock coverage key figure, select the Stock Coverage flag. You now see an
additional tab called Stock Coverage . A fixed unit can now be specified such as day or month.

On the Aggregation tab, specify a time characteristic that specifies the granularity of the
stock coverage. This characteristic also serves as the reference characteristic for the
exception aggregation. An exception aggregation must always be specified for key figures for
stock coverage.

On the Stock Coverage tab, specify a referenced key figure for the stock. This can be either a
non-cumulative key figure or a cumulative key figure. Select a referenced key figure for the
demand. The maximum number of time periods that are taken into account. The more time
periods are specified here, the more runtime will be affected. Decide whether the referenced
key figure for the stock is an opening stock or a closing stock.

A key figure for stock coverage can be used in all InfoProviders, with the exception of DataStore objects. If a key figure for stock coverage is used in aggregation levels, it is not input-enabled. A key figure for stock coverage can be used in formulas, formulas with exception aggregation, conditions, and in all possible navigation states of a query.

Key figures for stock coverage are not available in the standard queries on an InfoProvider. If a
time characteristic in the query is in the drilldown or filter, or a time characteristic is a
reference for an exception aggregation, this time characteristic must be compatible with the
time characteristic for calculating stock coverage. If it is not compatible, you will not be able
to obtain meaningful results. A time characteristic is compatible with the time characteristic
for calculating the stock coverage if a unique value from the time characteristic can be
assigned for every value in the time characteristic for calculating stock coverage.

In the figure, Stock Coverage Example, if there is a stock balance of 10,000 and the demand is
1000 per day, then there is 10 days worth of inventory. If demand is 2000 per day, then there
is only 5 days of inventory. If the demand is 1000 per day for nine days and 2000 on day 10
then there is only 9.5 days of inventory.