service level % in sap

[Former Member]

Hi Experts,

   My Client wants to use % based safety stock for components and i found that service level field in material master will suit the requirement. But when i add in 10% as my service level for a component and my PIR is 1000, stock=0, system created a planned order for 1000 without considering the service level and i tried other scenarios by adding stock and increasing the PIR but found no significance of service level. Is there any settings missing? iam using PD & VV types for different components. please guide me on this.

[sjeevan · Accepted solution]

For  MRP Types in OMDQ, automatic calculation of safety stock needs to have check mark for system to calculate safety stock and use it in MRP net calculation. Normally for PIRs you normally do not use manual or automatic (service level safety stock) you need to dynamic safety stock.

I gave an overview of safety stocks in the following thread

http://scn.sap.com/message/13430436#13430436

In the following thread I gave how daily calculation of dynamic safety works, understand it and make settings accordingly.

http://scn.sap.com/thread/3218062

[Former Member · Accepted solution]

Hi Jeevan,

   Thanks for your reply.

I understand from your links & replies that you are suggesting me to go for coverage profile instead of Service level. But my client insists to have service level because they follow the same in legacy also (i mean they maintain safety stock based on % only).Also i tried Activating the Automatic safety stock in customizing for MRP type PD. But no effect. Can you throw some light on service level. If this is not applicable or not possible then i think of coverage profile  Thanks in Advance.

[Former Member · Accepted solution]

Hi Experts,

  Please through some lights on this issue. Thanks in Advance.

[sjeevan · Accepted solution]

Hi,

You cannot use service level method for MRP type PD. Service level is used when the MRP uses past historical data and does forecast based on that data for example, VV, V2, VM etc.