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IBP IO: How to model Supply Variability in Safety Stock calculation?

May 08, 2017 at 04:55 AM

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Hello,

For a production facility, we measure the production reliability by calculating Schedule Attainment for each Product/Location ( compare Actual Produced Qty vs Planned Qty).

In IBP Inventory, how can one capture this supply variability in Safety Stock Calculation? Appreciate for all feedbacks and recommendations.

Thanks,

Tushar

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1 Answer

Best Answer
Tushar Deore May 31, 2017 at 03:54 PM
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Adherence = ABS (Actual Production Qty - Planned Production Qty)/Planned Production Qty

Production Lead Time CV (%) = 1.25 x (1 - Adherence) x PBR / PLT

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