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How can we get safety stock updated automatically for planning method A?

  • 16 June 2023
  • 4 replies
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We are using planning method A for the majority of our parts and have so far been updating the safety stock manually.

I see in the help that the automatic update of safety stock is possible with planning methods B and C. Why is that? And is there any way we can use it for planning method A?

Regards,

Basil

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Best answer by FNSMITHUN 19 June 2023, 13:55

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4 replies

F
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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

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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

F
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Userlevel 6
Badge +17

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

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Thank you Mithun K V. We will test this.

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