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?
