SIM items are those that have experienced a frequency of demand of how many or more?

SIM items, or Stock Item Management items, are those that have experienced a frequency of demand of two or more within a designated period. The rationale behind this threshold is that items with a demand frequency of two or more indicate consistent usage or sales, which is crucial for inventory management and logistics operations. This metric helps determine which items should be actively managed to ensure their availability in stock, minimizing shortages and enhancing service levels.

Items that experience a frequency of demand below this level may be considered less critical and subjected to different inventory management practices, such as reduced oversight or potential phase-out. The focus on a frequency of two or more allows logistics specialists to prioritize their resources effectively, ensuring that they are concentrating on items that are likely to be required by users, thereby optimizing supply chain efficiency.