Safety Stock comparison

[former_member84165]

I'm having a tough time seeing if there would be any difference between these two scenarios below. We don't have production, so it's purely on demand goods issues for consumption.

VB Manual reorder point, with HB replenish to max.

Case 1: Reorder point 20, safety stock 0, max stock 50.

Case 2: Reorder point 10, safety stock 10, max stock 50.

It would seem to me in both cases they would esentially work the same? As soon as I went under 20 total stock, the next MRP run would order back to 50 right? Or would there be a difference?

Does safety stock even affect anything in a non-production based environment? It wouldn't stop you from goods issuing when you are under 10 right? We do it like Case 1 above, so not sure if there is any benefit to us to use safety stock?

[former_member84165]

Since I didn't seem be getting great answers on this I ran a set of tests in my SAP test environment, set 2 materials as above, ran MRP to bring it up to 50 stock, and then did a goods issue from each for 45. Next MRP run then ordered 45 of each to bring both back up to 50, so indeed it looks like safety stock had no affect on this comparison. So it just leaves me with wanting the confirmation that in my scenario there would be no benefit to using safety stock?

[dom2021 · Accepted solution]

Hi,

When the MRP type is VB Reorder point, safety stock is merely for information purposes and does not influence the requirement calculation. However, if the stock falls below safety stock , the MRP controller receives exception message (96) in MD04.

In case of your scenario,The MRP run would create procurement proposal to max stock level ( 50) if the stock falls below reorder point.

Therefore, the MRP run would create Purchase Req./ Planned order when it is below 20 in Case 1 and only when it is below 10 in Case 2.

Thanks,

[dom2021]

Hi,

Please go through the blog post

https://blogs.sap.com/2016/01/10/the-difference-between-using-a-reorder-point-procedure-or-a-pd-with...

Thanks,

[former_member84165]

So the link recommends to not use safety stock, and just stick with reorder point. So you didn't really answer my question, would the above cases I gave give the same result?

[former_member197616]

Your HB is lot size procedure.

Case 1 when requirement is say 100 and when stock short falls by ssfety stock of 20 in one way and if there exists say safety stock 20 system when mrp run proposes 2 lots of 50 when there is no safety stock and one lot of 50 plus 30 based on rounding..

And the same logic for ur case 2.

Just add requirement to ur thought.

Regards

[former_member84165]

I don't really feel like this answers my questions.

[former_member197616]

Hi

Yes per above link and as per inventory methods irrespective of production better to have safety stock which will prevent you from stock run outs.

When mrp runs system willl check the safety stock requirement.

Despite many mrp types many clients will not use HB

Regards

[former_member84165]

That link recommends not to bother with safety stock but you are saying you should. You didn't answer my question of comparing the 2 cases that I gave of if they would behave any differently.