Hi @Basil ,

Please follow the below steps to automatically calculate the safety stock for planning method A

• Check the auto update safety stock option in inventory part and enter the service rate, if it is left blank then default value from company will be used

• Run calculate Planning Data, please enter the values in the Period field ( this is no of historical period taken into consideration while calculating the safety stock). If not specified system will take default value from Parameter for Distribution & Manufacturing

• Safety Stock will be calculated and updated after the above step using the below formula.

Hope this helps!!

Regards,

Mithun K V

Thank you Mithun KV , we will try this.

Regarding “periods”, what is one period, is that one month? What is the recommended number of periods to use in the calculation?

Concerning “service rate”, what best practice can be used to set these or is it a case of trial and error?

Regards,

Basil

Hi @Basil ,

Periods are the statistical periods, most of the time they are defined as months. I would suggested to use 12 periods, so that you are considering one year historical consumptions to calculate the safety stock

Standard best practice to use the service rate as 95% initially and later you can change it as per the business needs.

Service rate is  the probability of satisfying the demands/needs within the Leadtime.

Regards,

Mithun K V

Thank you Mithun K V. We will test this.