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Jan 21, 2022 at 09:00 AM

The relationship between the "Recommended Safety Stock" and "Propagated Demand Mean"

124 Views Last edit Jan 24, 2022 at 02:53 PM 2 rev

Hi Experts

I am testing the Inventory feature in SAP IBP according to best practices.

I have a question about the sheet Detailed Results in IO220 Planning Result.

In this sheet, I see the items "Recommended Safety Stock" and "Propagated Demand Mean".

I believe that the "Recommended Safety Stock" is the result of running the Inventory function, and it outputs the recommended inventory value.

However, I don't know what kind of value is output for "Propagated Demand Mean".

This is the first question.

 What kind of item is this "Propagated Demand Mean"?

 Where is this value calculated from?

I ran the Inventory function and the results are

Recommended Safety Stock = 1136

Propagated Demand Mean = 1898

"Propagated Demand Mean" is larger than "Recommended Safety Stock".

This is the second question.

 I know that "Propagated Demand Mean" refers to demand, but is it correct that "Recommended Safety Stock" is less than demand?

I would appreciate your answer to the above question.

Sato