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Oct 23, 2013 at 03:35 AM

Concern with Minimum Safety Stock - where is the control actually?


Dear Experts,

Need some knowledge from you to understand one point of minimum safety stock.

My main concern is = where is the control of minimum safety stock?

Let's take the below example -

Current Inventory = 10

Safety Stock = 6

Minimum Safety Stock = 5

Delivery Quantity = 6

Checking rule of delivery = Safety Stock is included as the stock.

In this situation, system allowed me to do the PGI of the delivery without any problem.

Whereas, the delivery quantity actually exceeded the minimum safety stock level !

Is it a correct process?

Shouldn't system stopped me from doing the PGI of the delivery as it was exceeding minimum safety stock level?

What is the purpose of minimum safety stock actually?

Is there any control of this minimum safety stock value?

Thanks in advance for your kind feedback.