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Need Urgent help from all of you - DYNAMIC SAFETY STOCK CALCULATION

siddheshwar_rajguru2
Active Participant
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Hi All,

Can any body give tell , how the system calculate dynamic safety stock calculation.

with the range of coverage profile.

Can any body give the standard SAP flow for the same.

Thanks in Advance.

Siddhesh

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Former Member
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HI ,

From SAP HELP here is the process flow of calculation of dynamic safety stock with an example:

Process Flow

1. During every planning run, the system checks for every MRP element (requirements, planned orders and so on) whether the available quantity is below the minimum stock level.

2. If stock falls below the minimum stock level due to a requirement, the system creates a procurement proposal and thus calculates the procurement quantity, so that the available quantity is replenished up to the target stock level, that is, the dynamic safety stock.

3. If the maximum stock level is exceeded, the system adjusts the quantities for procurement proposals that are not firmed correspondingly. If the procurement proposal is firmed, the system displays an exception message.

Example

The system determines an average daily requirement of 15 pieces. You have defined a minimum range of coverage of 3 days, a maximum range of coverage of 7 days and a target range of coverage of 5 days.

The system calculates the following:

Minimum stock level = 3 x 15 pieces = 45 pieces

Maximum stock level = 7 x 15 pieces = 105 pieces

Target stock level = 5 x 15 pieces = 75 pieces

The available quantity is 40 pieces and is therefore less than the minimum stock level. Therefore, the system creates a procurement proposal for 35 pieces (= target stock level 75 pieces u2013 actual quantity of 40 pieces) during the planning run.

Note

The system does not plan the dynamic safety stock as a gross quantity but takes it into account in the net requirements calculation. That means that the system then increases only the quantity of an existing planned order when it is necessary due to the availability situation. If sufficient material quantities to cover the safety stock quantity are already in stock, no additional planned order is created.

Regards,

Former Member
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Hi,

As to coverage profile, please refer to the following example:

  • Period ind.: M-Month

  • Number of periods: 3 (I.e. 3 months of calcualtion)

  • Type of per length: 1 (workdays)

Range of coverage in the first period

  • Min. 2 Tgt. 3 Max. 5

Then SAP system will calculate the dynamic safety stock as follows:

Take the requirements of 3 months into account, and figure out the average daily requirements according to workday calculation, E.g. total requirements of next 3 months is 60000 PCs and standard workdays are 20 days per month, so the average dailay req. is 60000/60=1000PCs, then according to the settings of range of coverage, the safety stock quantities as follows:

Min. 2000 Tgt. 3000 Max. 5000

That's it!

Have a nice weekend and good luck!

Z.T