How value of "W" is calculated while calculating automatic Safety stock with MRP Type "VM".?

[former_member664375]

How value of "W" is calculated while calculating automatic Safety stock with MRP Type "VM".? On several places, following formula has been shared of W = Total replenishment lead time (days) / forecast periods (days)

I am taking ROH material with procurement type "F" and only maintaining Planned Delivery Time (MRP view 2)

and i thought forecast period is being taken by system from "Forecasting view"

I know there can be two formulas to calculate safety stock depending upon Replenishment Lead time is greater than forecast periods

1)

SS = R * Sqr(W) * MAD

2) SS = R*W*MAD

I am not able to exact match the results with calculated Safety stock by system

Secondly, please confirm "R" value. I came to know it is a value based on percentage taken from chart (chart i get from google). I must need to multiple every value with 1.25 ? What is difference between Z & R

I am confused.

Please Reply

Thanks

[Caetano]

Hello

This blog explains the calculation of W:

https://blogs.sap.com/2014/04/10/safety-stock-calculation/

Regards,

Caetano

[former_member664375]

Dear Caetano,

Thanks for the message.

I already read that document and still not clear about results. As per document :

"W = ( PLDT *5/7) + GRT+PRT = 32.14 Square W = 1.22534

W value should be 5.6568

Anyhow, Please confirm if i take Forecast period Indicator "M - Month"

and out of RLT, I am just maintaining Planned delivery time = 5 days

Service Level = 95 %

Forecast periods = 4 Months

Let me share consumption values

08.2021 = 100 KG

07.2021 = 90 KG

06.2021 = 80 KG

05.2021 = 70 KG

Forecast Model = D

Reorder Point (After Executing forecasting MP30) = 25.687

Safety Stock (After Executing Forecasting MP30) = 6.459

MAD (After Executing Forecasting MP30) = 7.110

I understand totally how MAD is being calculated.

Please help me on understanding the values of safety stock considering service level 95 %

Please guide how system takes factor against service level?

Waiting for reply

Thanks