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Safety stock calculation issues in IBP(1702) inventory

Apr 27, 2017 at 06:29 PM

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Former Member

Just coped SAP3 std model with advanced copy with Prefix of NKE and named as PA= “NIKEINVO” on SAP on Demand cloud server. configured inventory model and upload data successfully and only the safety stock calculation are not upto the mark/expectation

Single Stage:

Issue: Irrespective of defined Service lvl in excel or loaded service lvl, it always calculates with 99.99% service lvl in single stage optimization

PFA: SingleStageopt_ output.xls

single-stage.jpg

Multi stage:

Run 3 tests to conclude

1) with time varying target stock and forecast, forecast error CV constant across

multi-stage-test1.jpg

2) with time varying Target stock , Forecast error CV and Forecast constant across

multistage-test2.jpg

3) with time varying Target stock , Forecast error CV and Forecast

multistage-test3.jpg

Issues :

1) Always calculates Service Variability Safety Stock but not computing Demand variable safety stock ( even inputs maintained Forecast & Forecast error CV)

2) Recommended safety stock range should be 41-60 range ( more safety stock at customer facing DC ) and Plants should be ranges of (10-18) but behavior is completely different

3) Internal Service lvl (Non-stock out) data maintained in MD as in the range of ( 0.5 to 0.9) and always picks up 0.5 across, not at all computing, why no change

4)) Propagated Std deviation based on first bucket Forecast error CV and the same value of first bucket being used across time buckets ( No variability with input values)

PFA: MultiStageopt_ output.xls

Would you suggest how to overcome these issues

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