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Former Member

minimum safety stock

hello experts,

what is minimum safety stock in reorder point planning?

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3 Answers

  • Best Answer
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    Former Member
    Sep 24, 2008 at 05:23 AM

    Hi,

    Minimum Safety Stock

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

    Use

    Defining a lower limit can influence the following:

    material master data maintenance

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

    forecasting

    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.

    Dependencies

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

    Hope this helps.

    Revert if you need more details.

    Regards,

    Tejas

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    Former Member
    Sep 24, 2008 at 05:23 AM

    Checking Group for Availability Check has a role on this and not reorder planning. It is depending on how the scope of check is defined.

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  • Sep 24, 2008 at 05:26 AM

    Dear,

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

    The reorder point should cover the average material requirements expected during the replenishment lead time.

    The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level.

    Regards,

    R.Brahmankar

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