Which key figure is primarily used for initializing inventory levels in IBP?

The key figure primarily used for initializing inventory levels in SAP Integrated Business Planning (IBP) is the Inventory Target. This figure represents the desired level of inventory that an organization aims to maintain based on forecasted demand, supply considerations, and corporate objectives. By setting an inventory target, businesses can ensure that they hold the right amount of stock to meet customer needs while minimizing excess inventory costs.

The Inventory Target serves as a benchmark for various inventory management processes within IBP, influencing how other metrics, such as safety stock or planned inventory, are calculated or adjusted. It provides a clear goal for inventory levels, facilitating effective planning and execution of supply chain strategies.

While options like safety stock and planned inventory are important components of inventory management, they are typically calculated based on the established inventory target. Safety stock is used to buffer against unforeseen demand fluctuations, and planned inventory encompasses both safety stock and the inventory target. However, none of these figures serves as the primary starting point for initializing inventory levels as does the Inventory Target. Service Level, on the other hand, is more related to the performance metric that measures the ability to meet customer demand and is not directly used for inventory initialization.