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Jun 19, 2018 at 07:15 AM

SAP safety stock formula

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Hi Experts,

I am using MRP Type V2 to calculate safety stock and re order point automatically.

The master data and forecast data is as follows:

1. MAD = 91

2. PDT = 20 days

3. Forecast period = 30 days (monthly)

4. Service level = 90%, R = 1.6

According to the formula given by SAP,

SS = R * W * MAD

Where W = PDT/Forecast period

In this case, it should be 1.6 * (20/30) * 91 = 97

But, the system calculates safety stock as 119


Can you please let me know why there is this difference when PDT is less than forecast period?

If the forecast period is greater than PDT, The formula given by SAP SS = R * Square root (W) * MAD works fine for me.