Recommended safety stock KF is populated even if location is non stocking - SAP IBP

[former_member850208]

Hi ,

I have set up a simple scenario where there are two plants PLANT1 and PLANT2 connected with DC1. DC1 is connected to DC2 and DC2 is connected to customer. I am running inventory optimization. I have run following 3 scenarios.

scenario 1-

Inventory holding costs ( All other parameters/cost are same in all locations)

plant 1 - 10 / plant 2- 8 /DC 1- 5 /DC2 - 2

Result: Except plant1 , all location has some recommended safety stock

scenario 2-

Inventory holding costs ( All other parameters/cost are same in all locations)

plant 1 - 10 / plant 2- 10 ( both plants have same IHC) /DC 1- 5 /DC2 - 2

Result: Except plant1 , all location has some recommended safety stock

scenario 3-

changed Plant 1 and Plant 2 to non stock holding location ( Inventory holding policy 1)

Inventory holding costs ( All other parameters/cost are same in all locations)

plant 1 - 10 / plant 2- 10 ( both plants have same IHC) /DC 1- 5 /DC2 - 2

Result: Except plant1 , all location has some recommended safety stock

I was expecting a) equal recommended safety stock in plant1 and plant 2 in scenario 2 and b) zero recommended safety stock in plant1 and plant 2 in scenario 3 as both locations are non stocking.

Is there any setting i am missing here?

Regards,

Ill

[former_member850208]

Hi Chris,

Thanks for reply. Please see answers of your questions below.

Did you use a user scenario for each of these 'scenarios'? - No, i meant i changed parameters and checked. Example - inventory holding cost rate

How did you set PLANT1 and PLANT2 as non-stocking, in the Location Product master data? - Yes, i provided 1 for both plants as inventory holding policy and null for DC

What are the lead time and lead time variability between each node? - I have given same lead time and variability between each node ( 1 and 0,2 between plant1 and plant2 to DC1)

What are the sourcing ratios between PLANT1 and DC1 and PLANT2 and DC1? - its 0.5 and 0.5

What is the value of AVERAGESERVICELEVEL key figure in each scenario at each node? - Average service level is 1 at each node

How did you set PLANT1 and PLANT2 as non-stocking, in the Location Product master data?- Yes, i provided 1 for both plants as inventory holding policy and null for DC

Also, please look at the following key figures to see how the recommended safety stock is behaving (SAFETYSTOCKDEMANDVAR, SAFETYSTOCKSUPPLYVAR, SAFETYSTOCKSERVICEVAR and SAFETYSTOCKLOTSIZE). - SAFETYSTOCKLOTSIZE is 0 , others have some numbers except for plant1 where it is 0

ideally both the plants should not have any safety stocks irrespective of any cost/lead time/ variability as they are non stocking locations.