on 11-01-2021 12:04 PM
Hi,
Can anyone please help in understanding how the service variability safety stock is calculated. I have seen a few blogs such as the one below but unfortunately it falls short of explaining the key figure. Any help will be greatly appreciated.
Regards,
Zeeshan.
Hi Ahmed,
Thank you for reaching out with your inquiry.
The multi-stage optimization generates optimal internal service levels as decision variables to allocate safety stock across each component sourcing and transportation sourcing relationships in a multi-stage network, e.g., output key figures: INTERNALLOCTOPRDAIF@WKPRODLOCCOMPSRC and INTERNALAVAILABLEINFULL@WKPRODLOCLOCFR.
These optimal internal service levels are mean values and have an implicit deviation gamma curve around it. As a result, the variability of such service level needs to be captured in the mode of safety stock downstream, hence, the Service Variability Safety Stock output key figure.
Regards,
Alexis Lozada
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
User | Count |
---|---|
13 | |
3 | |
1 | |
1 | |
1 | |
1 | |
1 | |
1 | |
1 | |
1 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.