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Dynamic safety calculation- requirements?

Dear Experts,

We are In the process of Mapping & gathering the inputs from the client for the Dynamic Safety calculation with the helpful data from SDN blogs.In this process we have received below questions from the client.Please support us to move further.

  1. What is the system using for calculating the requirements? Is it total consumption, planned consumption, something else?
  2. Does it take into account future forecasted need and if so where does it get that data from?

Best Reagrds,


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2 Answers

  • Best Answer
    Oct 22, 2015 at 05:20 AM


    Generally It will be based consumption history .When you run forecast system will calculate DAR daily average requirement which is base for Safety stock calculation.and based on coverage profile settings the calculation will be done.

    There are many wiki and docs are available on this.Please refer the below links.

    Dynamic safety stock calculation - ERP Operations - SCN Wiki…


    Velmurugan S

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  • Oct 22, 2015 at 06:43 AM

    Hello Sai,

    Safety stock is a extra stock to avoid stock out or fulfill the uncertain demand at any point in time . Safety stock levels permit business operations to proceed according to their plans.

    Safety stock is held when there is uncertainty in the demand level or planned delivery time for the product;

    There are two type of safety stock

    1. Static safety stock: Stock level is always same ( fixed value enter as safety stock)

    2. Dynamic safety stock: Stock level change as per the Requirement.

    • Dynamic safety stock calculation.

    With help of the dynamic safety stock calculation to more accurate way achieve the customer requirement without failure

    Dynamic safety stock calculation formula based on Average daily requirement(ADR). For calculating the dynamic safety stock calculation you have to maintained the coverage profile.

    Request go through my document of Dynamic safety stock calculation with help of the coverage profile for understanding.

    Dynamic Safety stock calculation with help of the Coverage profile

    I hope this information helpful to you


    Umesh Mali

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    • Hello Sai,

      Yes, You can set the MRP type as PD and check in your lower client, It will work for you.

      I clearly explain about the Period indicator in my document.

      If you want to calculate your requirement base on the Month, Week or planning calendar, in that case you can set you period indicator accordingly. M= month , w= Week , K = Planning calendar

      Ex. Suppose your requirement on every week ( Weekly base) in that case you set as week as period indicator.

      Number of Period: For your dynamic safety stock calculation, according to period system calculate the daily average requirement and base on your daily average requirement system calculate the order. ex. If you want to cover your next 5 week of requirement, in that case you set as 5 in number of period so system always calculate your next 5 week ADR and base on that create the order.

      Execute one scenario in your lower client and check your all business requirement if you have any issue revert back.

      I hope this information helpful to you


      Umesh Mali