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Dec 20, 2022 at 09:39 AM

Safety Stock automatic calculation

318 Views Last edit Dec 20, 2022 at 12:07 PM 4 rev

Good morning,

can someone help me understand how the system calculates the safety stock?

I found the formula which should be this

SS = R x SQRT(W) x MAD

where W = (Lead time /Forecast period)

and I have set the following parameters in the material master:

Service level: 80 % which means R Factor 1.05;

Period Indicator: T 'Daily

Forecast Model: D --> Constant model

Plan. Delivery Time: 45 days

History periods: 60 days

Forecast periods: 30 days

MAD = 5

why is the safety stock result is 31? (see screen). can anyone help me understand?

image.png

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