Reorder point with Beta Service level (BS) method in SNP

[Former Member]

Hi,

Can anyone have information on the formula being used by SAP in APO version 7.0 for calculating Safety stock using BS method (Reorder point with Beta service level). ? I need to validate the results generated by the system.

Thanks,

Shardendu

[satish_waghmare3 · Accepted solution]

Hello Shardendu,

If you have not referred this thread, here is the link.

BT Method of Safety Stock Planning in SNP | SCN

and

This link gives quick overview on Safety Stock Planning.

http://www.stpconsulting.com/Assets/pdf/Web_SCM1_Advanced_SStock_Planning.pdf

Hope this will help.

Thank you

Satish Waghmare

[Former Member · Accepted solution]

Hi Satish,

I am looking for the formula being used by SAP to calculate safety stock in BS method.

Thanks,

Shardendu

[Former Member · Accepted solution]

Hi Shardenu,

If someone can tell me how and where to post a document in SCN, I will post the safety stock formulas.

Best Regards,

Mike

[satish_waghmare3 · Accepted solution]

Hello Mike

Please refer this link to know about stepwise process to post a document/blog on SCN.

Hope this will help

Thank you

Satish Waghmare

[Former Member · Accepted solution]

Hi Shardendu,

The formula for calculation of safety stock for BS is as below.

Regards,

Mitesh

[Former Member · Accepted solution]

Hi,

I'm glad there was an answer selected as correct. I'm unable to post the SAP safety stock formulas for three reasons:

1. The SCN blog posting service does not accept pdf files. I coud get around this but the next 2 reasons are critical.

2. The document I have did not go through the official SAP knowledge management process so can't be provided to customers as documentation.

3. Publication of the formulas would lead to endless questions from customers like "why is there a plus instead of a minus at this point in the formula?" and "my textbook shows XYZ. Why don't you change your formula to match?".

So, the SAP extended safety stock formulas are not universally accepted as correct. There seems to be much discussion in the field about what the correct formula is for each process method.

In every case, there are significant restrictions on using the extended formulas which are described in Note 617567 - Prerequisites for extended safety stock planning.

I suggest you try the SAP safety stock methods and then determine if they meet your business requirements.

Best Regards,

Mike

[Former Member · Accepted solution]

Hi,

Do you have  examples to calculate Advanced safety stock for all the methods AS , AT , BS and BT ?

[Former Member]

Hi All,

Does anybody share some examples to calculate extended safety stock by using different  methods like AS,BS,AT and BT ?