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?

[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.