Dynamic safety stock calculation

[Former Member]

Dear all

scenario is:

i have added PIRs for 5 weeks,i.e i have filled five columns in MD 61 with different values in each week.

Now i want to have the dynamic safety stock which take average of only 3 weeks and then multiply it to 3 days.i mean i want to have 3 days stock but it will be the average of 3 weeks.

and imp. thing is that these 3 weeks period should start from the day when i run MRP.how can i cater this.if any confusion to understand this scenario then please tell me,i will explain again

[Former Member]

Hi,

Pls. find Dynamic Safety Stock calculation procedure:

Calculating Dynamic Safety Stock

Process Flow

1.During every planning run, the system checks for every MRP element (requirements, planned orders and so on) whether the available quantity is below the minimum stock level.

2.If stock falls below the minimum stock level due to a requirement, the system creates a procurement proposal and thus calculates the procurement quantity, so that the available quantity is replenished up to the target stock level, that is, the dynamic safety stock.

3.If the maximum stock level is exceeded, the system adjusts the quantities for procurement proposals that are not firmed correspondingly. If the procurement proposal is firmed, the system displays an exception message.

Example

The system determines an average daily requirement of 15 pieces. You have defined a minimum range of coverage of 3 days, a maximum range of coverage of 7 days and a target range of coverage of 5 days.

The system calculates the following:

Minimum stock level = 3 x 15 pieces = 45 pieces

Maximum stock level = 7 x 15 pieces = 105 pieces

Target stock level = 5 x 15 pieces = 75 pieces

The available quantity is 40 pieces and is therefore less than the minimum stock level. Therefore, the system creates a procurement proposal for 35 pieces (= target stock level 75 pieces u2013 actual quantity of 40 pieces) during the planning run.

The system does not plan the dynamic safety stock as a gross quantity but takes it into account in the net requirements calculation. That means that the system then increases only the quantity of an existing planned order when it is necessary due to the availability situation. If sufficient material quantities to cover the safety stock quantity are already in stock, no additional planned order is created.

Hope this helps.

Regards,

Tejas