Query regarding Safety Stock

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Hi Experts,

I need to enable the automatic safety sotck.Please read below:

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Safety Stock:

In IMG -> Materials Management -> consumption Based Planning -> Master Data -> Check MRP Types (transaction code OMDQ) you use the indicator Calculate Safety Stock so that system calculates the safety stock automatically.

The safety stock can be calculated automatically for materials planned with one of the consumption-based planning procedures if:

1. The service level has been maintained in the material master record.

2. Historical data exists

3. The forecast has been carried out for the material.

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We basically want to enable it for raw materials. Now my query is regarding the 2nd and 3rd points mentioned above. When they say historical data, does it refer to consumption data and for how long should it exist? Forecast (for raw material?), what is meant by it, please explain.

Thanks,

Sachin