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Sep 15 at 11:42 AM

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

56 Views Last edit Sep 15 at 12:14 PM 2 rev

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