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# Dynamic Safety stock calculation using coverage profile

Dear ALL,

I have configured the coverage profile using the following parameters.

Period: M

Period lengths : 3

Number of periods :1

Number of days per period :30

Target range in the first period : 90 Number of periods : 1

The same coverage profile is assigned to the Material master. While running MRP the average daily req should b calculated using the following formula

Requirements in the specified number of periods / Number of days within the total period length.

But the system is considering all the requirements that are created in the current month as well as in the previous periods. As per the parameters system should take all the requirements in the current month and devide the same by 30 but system is taking all the requirements that exists for calculating the same.

PLease help whether i need to maintain any other parameter/how should I make system to consider the requirements in the current period only.

Regards

Ankush

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### Related questions

Posted on Jul 03, 2010 at 01:59 PM

Dear ,

As to coverage profile, please refer to the following example:

Coverage profile is used in Material Requirements Planning for calculation of dynamic safety stock. This dynamic safety stock is calculated by using formula: Average daily req*range of coverage.Average daily req is calculated by considering requirements in specific periods and no of days for the total period length.You can find all the setting in MRP-- > Planning -> MRP Calculation---->Define range of coverage profile.

• Period ind.: M-Month

• Number of periods: 3 (I.e. 3 months of calcualtion)

• Type of per length: 1 (workdays)

Range of coverage in the first period

• Min. 2 Tgt. 3 Max. 5

Then SAP system will calculate the dynamic safety stock as follows:

Take the requirements of 3 months into account, and figure out the average daily requirements according to workday calculation, E.g. total requirements of next 3 months is 60000 PCs and standard workdays are 20 days per month, so the average dailay req. is 60000/60=1000PCs, then according to the settings of range of coverage, the safety stock quantities as follows:

Min. 2000 Tgt. 3000 Max. 5000

Example :

Period indicator: W(week)

Number of periods to be considered for ADR: 2

Period length: Standard days (5 days)

Range of coverage: 5 days

Req for 1st week: 1000

Req for 2nd week: 1000

then Ave daily req.= (1000+1000)/(5 period length*2 no. of periods)=200

then Dynamic safety stock= 200 (ADR)* 5(range of coverage)=1000

I would suggest you to go through this usefull wiki regarding Dynamic Safety Stock to clarfiy your requirement :

http://wiki.sdn.sap.com/wiki/display/ERPLO/Dynamicsafetystock+calculation

http://www.sap-img.com/materials/safety-stock-calculation-in-sap.htm

Try best on the above information and revert if you need any more help

Regards

JH

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• Jiaul Haque Orla McLean

Dear ,

You should maintain Service level percentage in MRP view ( most probaly MRP2/3 view -pls check as i am not with system now ) for Safety Stock Calcualtion based on Forecast Base MRP methods as explained earlier .

where as Alpha , Beta , Gama all are Smoothing Facotr in Forecasting View of the material master which smoothen then MAD, Basic Value , Forecast Demand calacualtion based on the Forecasting Model Selection .These are applicable based on the Forecasting model .For example , if you keep Moving average Model selection -G in Model selection option , systme will prompt you waht are the smoothing factor you need to maintain in Forceasting view .

Please check with your Period Forceast and Period per season field , because you need to do Forecasting Jan-Oct 2 time and again Nov-Dec 3 times

Hope you understood now .

Regards

JH