Replenishment Safety Stock

How to View Replenishment Safety Stock?

· safety stock is stock held in a reserve to guard against shortages. The shortage may arise due to excess demand or lesser production.

· There are 3 parameters considered during the calculation of Safety Stock.

1. Safety Stock History Months: How many months' history data needs to be considered for generating Safety Stock.

2. Customer Service Level: Pre-Defined values from 50 to 99.

3. Lead Time: Lead Time needs to be considered.

· Safety Stock History Months and Customer Service Level are defined at the global level in the Replenishment Parameters screen. They can also be defined at the Item-Location level in Item Location Parameters screen.

· Lead Time value will be taken from the Supply Hierarchy screen as days.

· To view the Calculated Safety Stock screen, go to Menu bar --> Replenishment --> Masters --> Calculated Safety Stock.

Item	Item that should be used
Item Description	Description of the Item.
Location	Location that should be used.
Location Description	Description of the Location.
Mean Per Month	Average sales within the period of Safety Stock History Months
Standard Deviation Per Month	Standard deviation within the period of Safety Stock History Months
Min Sales	Minimum sales within the period of Safety Stock History Months
Max Sales	Maximum sales within the period of Safety Stock History Months
Lead Time	Lead Time as specified in Repl. Item Location Parameters. The default value is 1.
Current Safety Stock	Safety Stock as specified in Repl. Item Location Parameters.
Current Safety Time	Safety Time as specified in Repl. Item Location Parameters
Calculated Safety Stock	· Std deviation Over Risk Period = Math. Sqrt (((Lead Time / 30) * (SD Per Month ^ 2)) + ((Supply Variability ^ 2) * (Mean Per Month ^ 2))) · Service Factor = Service Factor (Customer Service Level) · Calculated Safety Stock = Math. Round (Service Factor * Std deviation Over Risk Period, 0)
Calculated Safety Time	if Bucket Type= "Weekly" Calculated Safety Cover Days/7 else if Bucket Type= "Daily" Calculated Safety Cover Days, Else Calculated Safety Cover Days /30
Current Safety Cover Days	(Current Safety Stock * 30) / Mean Per Month
Calculated Safety Cover Days	Math. Round ((Calculated Safety Stock * 30) / Mean Per Month, 0)
Current Safety Cover Lead Time	Current Safety Cover Days/int M Lead Time
Calculated Safety Cover Lead Time	Math. Round (Calculated Safety Cover Days / Lead Time, 0)
New Safety Stock	User input
New Safety Time	User input