IBP Inventory vs S/4Hana

[OliverA41]

Hi,

I tested in the last day the IBP Inventory. For this, I look in the S/4 System and find a product, which create in S/4 a saftey stock.

I used follow values from the S/4 System and create a Recommended Safety Stock in IBP. But for my suprise, the Saftey Stock in IBP was very high. Here the values

Target Service Level 80 %

Forecast : every month 72 EA

In S/4 the Safety Stock is 82 EA / Month

In IBP the saftey stock is 124 EA / Month

IO Sales was the same values in both System.

The Forecast Error CV is 1.25

Can you explain me, why S/4 has, from my view, the better result ?

Regards

Oliver

[OliverA41 · Accepted solution]

Hi Mutayalappa,

I have found the reason, why I get so high saftey stock The reason is, we have a lead time from 75 days and I insert this into the transportation lead time. But I am not consider, that the transportation lead time is on week level. So, I hanged the value in 10.7 (transportation lead time) and than the saftey stock result was 65. That is so far good.

Thanks for the help.

Regards

Oliver

[former_member569168]

Hello Oliver,

Could you please give both S4HANA snap shot and IBP Snapshot with all the parameters like PBR, Lead time, Inventory holding cost rate and so on ....

Thanks and Regards,

Mutayalappa Talapaneni.