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Calculation of dynamic safety stock when plant stock is available

Hi All,

My concern is regarding calculation of dynamic safety stock when plant stock is available for a material.

I am clear about the calculation of dynamic safety stock by using the coverage profile settings when plant stock is zero for a Material X(Available stock zero in MD04 for Material X).

Suppose for Material X the available stock on a particular date is 4000. For Material X the current week requirement is 3060.Then how the dynamic safety stock will be calculated.Coverage profile is 106(6 days,4 week). Rounding value is 1000.

Here how the safety stock is getting calculated.Or i want to know whether in this case safety stock will be calculated or not.?

Need ur guidance experts.

Best Regards,

Blessedgirl

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2 Answers

  • Posted on Jul 23, 2016 at 12:59 PM

    Hi

    consider following example:

    1. in configuration you have set: 10 days as "minimum stock level" and 35 days as 'Target Stock Level".

    2. in next month average requirement for a material is 100 PC per day and stock is 850 PC right now.

    3. because stock doesn't cover 10 days (10 days* 100 PC per Day=1000 PC), MRP has to create a new planned order; amount of this planned order will be 3500 (35 days*100 PC per Day) minus 850.

    Best Regards

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    • Hi Samira,

      If i will consider my case then

      For the first week no schedule lines will be generated as already stock 4000 is there as after fulfilling the

      requirement of 3060 for the first week,available stock is 940.

      For the second week requirement is 3060-940= 2120 if dynamic safety stock will be calcualted then (3060*3/24)*6

      = 2295 so total requirement for second week will be 2120+2295 = 4415

      But system is still calculating only 3000 quantity schedule line for 4415 requirement.

      If i will not consider the dynamic safety stock calculation here then requirement will be 2120 only which will

      be rounded off to 3000(Rounding value 1000).

      Thats why i want to know in which scenario dynamic safety stock will not be considered.

      Please assist me on the logic if anyone knows as i am confused on this concept.

      Also i am attaching the coverage profile configuration logic.Please assist me based on this data how should i calculate target stock level if possible. That will be really helpful.

      Best Regards,

      Blessedgirl

  • Posted on Jul 24, 2016 at 03:28 PM

    Hi,

    please find the below thread for understanding the safety stock calculation process for understanding.

    Dynamic Safety Stock – The Quantity Float

    Dynamic Safety stock calculation with help of the Coverage profile

    Coverage Profile

    If you have query kindly revert.

    Thanks & Regards

    Sandeep Kumar Praharaj

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