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Min. safety stock. MRP-2

What is the significance of this field? Pl explain in short.

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  • Best Answer
    Posted on Jul 04, 2007 at 03:22 PM

    Hi Sandeep,

    Safety stock as the name suggest is the stock level till which the dead stock or stock out situation will not arise (probable figure based on past data maintained in master).

    As such this figure is not stock, it is cut-off figure maintained in master which is used for Planning and once the stock level dips below this value, you can configure system to generate PR, orders automatically. It has its relevance in MRP and CBP.

    Safety Stock is the quantity of stock held to satisfy unexpectedly high requirements in the stocking-up period.

    The purpose of the safety stock is to prevent a material shortage from occurring. In order to determine the safety stock level, you must first specify the risk of a material shortage and also the desired service level.

    Usually the safety stock will not be used in production.

    The purpose of the safety stock is to prevent a material shortage from occurring.

    In order to determine the safety stock level, you must first specify the risk of a material shortage and also the desired service level.

    The safety stock depends on the service level that you specified in the MRP 2 view of the material master record and on the accuracy of the forecast. The more accurate the forecast, the smaller your safety stock can be.

    You can specify a minimum safety stock. If the result of the safety stock calculation is lower than this limit, the safety stock is then automatically set to this minimum value. You enter the minimum safety stock in the material master record ( MRP 2 view ).

    Regards,

    SDs

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  • Posted on Jul 04, 2007 at 02:06 PM

    Sandeep,

    Help!!!

    <b>Minimum Safety Stock</b>

    The quantity that defines the lower limit for safety stock. This value cannot be exceeded.

    <b>Use</b>

    Defining a lower limit can influence the following:

    <b>Material master data maintenance</b>

    The safety stock is checked to see if it is greater or equal to this lower limit.

    <b>forecasting</b>

    The lower limit is checked if you use an availability indicator which shows, according to customizing settings, if the safety stock is to be calculated again in a forecast.

    If the safety stock is lower than this level in forecasting, the safety stock is automatically increased to the value of the lower level.

    <b>Dependencies</b>

    The safety stock must always be greater or equal to this lower level.

    Hope this helps....

    Regards,

    Prasobh

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 04, 2007 at 03:05 PM

    Hi sandeep,

    I dont think this field has any significance in the MRP run. If the min safety stock level is falls, then the exception message will come in MD04.

    regards

    TAJUDDIN

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