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
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.