Cover period
Cover period indicates the number of time buckets (for example, days) you require the inventory to meet the demand. Cover period enables you to use variable levels whereas standard inventory is traditionally defined as a fixed level. The standard inventory level depends on demand forecasts and is useful in situations such as seasonal fluctuation in demand. The variable level indicates the cover period for which you require to maintain the stock for meeting the demand. If the fixed and variable levels are defined, the sum of both are considered. These values are used when creating batches.
Cover periods can be specified on the Inventory point tab when creating a product. You can also define maximum and minimum cover periods in the Products window.