I am trying to understand how safety stock, target stock level and Days' Supply KFs in planning area are calculated. I mean, I have read SAP documentation and numerous threads about these, but none come close to what I am looking for - a simple to understand explanation.
We are using standard safety stock/target stock macros. In our product master, we have Safety days supply = 30, Safety stock level method = SZ, target days supply = 0, target stock level method = blank (meaning, use target days supply).
I would like to know, in simple english (or math or both) how the functions SAFETY_CALC & TARGET_CALC works (when you load a specific product & location in interactive planning.
Similary, how Days' supply COVER_CALC works.
Here is an example, for product P1 @ L1 location, which has same product master settings as mentioned above. I have pasted the screen in two parts here (first, + 18 months. M01 = 07/2010 & M18 = 12/2011 for the sake of this example.
I appreciate if some one can explain me in simple terms how 'Safety stock', 'Target stock level' and 'days' supply' KF values are derived as shown below. We do use standard default macros without any changes. thanks in advance.