I am working with Range of Coverage profile,
I am not able to calculate safety stock for all the periods correctly.
Can somebody please guide me on this issue, how to use Range of Coverage to calculate safety stock & how Range of Coverage profile helps calculating safety stock.
Range of coverage is used for dynamic safety stock.The safety stock is dynamic as per the requirements.If requirement is more safety stock will automatically increaed.For that u have to maintain target range of coverage, means for how many days stock will cover the requirement. This stock is not quantity based but it is period based.
Safety stock = requirement in a period/no of days in period X range of coverage.
Inputs are for which period system should calculate requirement say week,month,six months etc.then number of days in that period , enter from factoty calender or manually. So that system will calculate average requirement per day.
& range of coverage means for how many days u want the requirement as a safety stock.
Create requirements & see the result in stock requirement list.