Automatic Safety Stock

Hi Experts,
Currently MRP type is PD & Planning is make to order for finished goods.
I have requirement, wanted system to calculate safety stock automatically based on consumption value for Raw material.
Material should be further Planned in the same way, But if stock falls below safety stock , it creates a Purchase requistion.
System should calculate the safety stock rather than Manually entered.
Thanks & Regards,
Vivek Kumar

Hi Robert,
I don't know whether this will suffice your requirements, but actually it sounds like "Dynamic Range of Coverage".
It is like you want to keep the stock of certain materials as safety stock (coverage of requirements in exigencies) for certain number of days, weeks etc.
For example, one material has got average consumption (depenedent on main requirement of parent materials) requirements of 50 pc. per day and you want to keep a supply of 3 days in hand to cover unforeseen reqmnts, then based on this consumption pattern system will automatically calculate 50 * 3 = 150 pc. extra as safety stock, often called Dynamic Safety Stock.
As & when the main requirements change for parent materials, the depenedent requirement also changes, and hence the dynamic safety stock. For example, if the demand has increased such that average consumption per day comes out to be 80 pc., then calculation of safety stock will be 80 * 3 = 240 pc. extra (as you always want to cover 3 days requirements).
If this is your requirement, then try configuring this feature by creating suitable profiles for Range of coverage (depending on certain groups of materials, like for some you want to get coverage for 2 days, some for 5 days, some for 1 day and so on). And assign the suitable profile to corresponding material master. This will work with normal PD type of MRP without any tweaking.
Reply whether it worked for you.
HKV...

Similar Messages

  • Safety stock and safety period

    Can anybody help me in understanding the effect of safety period in MRP..
    CAn anybody give me an explanation with numbers so that i could test and understand..
    Please help me out..

    Dear
    There are plenty of earlier posting on Safety stock and safety periods .
    Safety Stock : This is one kind of Un-restricted stock which will be used to full fill the un-expected damand for any material apart from the normal stock .Safety Stock calcuation depends on requireiment .It can be pre-defined ( manual safety stock -MRP3 view-Safety Stock ) or Automatic Safety Stock based on the MRP Type set up in OMDQ.If you want automatic safety stock , then it will calcuated based on Forecasting view parametrs , forcast model , MAD, BASIC value calcualted wheil excuting Forecasting collectively or individually .
    Safety Stock Calcualtion happend based on following CONDITION :
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    2.In MRP Type -SPRO-MRP-Check MRP Type -Select any one of the MRP Type like VV , you will find that Calcualtion of Reo-Order Point and Safety Stock Check Box Ticked .Based this set up and above Forcasting view , safety Stock will be calcualted with certain formaul .Here in the Material Master MRP3 view u need to maintain Service Level Percentage of that Material whcih will be consideredr as Service level factor to calcvualte the Safety Stock automatically based on the MAD and Basic Values calcualtion in Forcating View Individually (MM02) or collectively in MP38 .
    Hope this above facts will help you to understand the calcualtrion of Safety Stock .
    Formula : Safety Stock = R x Sq.rt. W x MAD
    Safety Stock = R x W x MAD
    Refer our earlier posting on the similar issues :
    Automatic reorder point calculation
    safety stock and min safety stock
    Hope it clarifies
    Regards
    JH
    Edited by: Jiaul Haque on Feb 21, 2011 10:31 AM

  • Automatic reorder point and safety stock caluclation- MRP type:V2

    Hi,
    I want the system to calculate reorder point and safety stock. To simulate this i created one material with
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    the historical value for past 12 months as 100 nos in material master.
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    03.2009     100
    02.2009     100
    01.2009     100
    12.2008     100
    11.2008     100
    10.2008     100
    09.2008     100
    08.2008     100
    07.2008     100
    06.2008     100                 
    05.2008      100                
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    Now I have two questions.
    1) How the system has arrived the reorder point value as 14 nos.
    2) Why there is no safety stock updated in material master.
    Could u please clarify this.
    Thanks and Regards
    Purushothaman

    Hi,
    This is further to my preivous mail. I have changed the consumption values and now i am getting the safety stock.
    MRP type:V2, service level as 97%, Forecast model:D,Hist. period:12,Forecast periods:12, and I entered
    the historical value for past 12 months as.
    04.2009     100
    03.2009     80
    02.2009     110
    01.2009     85
    12.2008     90
    11.2008     95
    10.2008     125
    09.2008     90
    08.2008     90
    07.2008     92
    06.2008     101
    05.2008     100
    After executing the forecase the sytem has calculated the below parameter.
    Basic value:95.759
    MAD:11.448
    Safety stock:10.252
    Reorder point:23.658.
    Can anyone explain me how these calculation arrived.
    Thanks and regards
    Purushothaman

  • Safety stock not covered by schedule lines in planning run

    Hi !
    In our organization we are trying to implement scheduling agreements and automatic creation of delivery schedule lines through MRP. We have MRP type PD and it considers the reservations created by PM orders and Production orders as requirement elements. When I do the planning run, it creates schedule lines for the PM order reservations and purchase requisition for safety stock. I need it to create schedule lines for all scenarios. Kindly help and suggest a solution.
    Regards,
    Satya

    Hi,
    Please refer the below links.
    Schedule Lines not getting created in MRP
    Re: No Scheduling line is generated when RUN MRP
    Hope it helps you.
    Thanks.

  • Safety stock as per location possible ?

    I want to maintain a buffer stock at a storage location which is not main storage location of material. An automatic reservation should be created if stock level goes down.
    Is it possible ?

    Yes it is possible by defining MRP at storage loc level with reorder point and maintain the safety stock at sub storage location.
    When you run MRP, if the stock is below safetry stock and reorder point levele system will create a reservation from mainstorage location to sub storage loction
    Hence in MRP 4 view  forplant and storage loc maintaine - maintain the setting MRP carriedout sepereately in the storage location.
    Please come back if required

  • Maintain plant specific safety stock

    How to maintain plant specific safety stock for the same material.

    Hi swetha
    First Go to T : code : MM02 : change Material
    Enter plant number for which u want to enter Safety stock
    Goto MRP-2
    Net Requirement calculation
    enter safety stock
    Use of safety stock :
    Safety stock
    Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period.
    The risk of shortfalls is reduced by having a safety stock.
    Procedure:
    With manual reorder point planning, you can enter a value in the material master record. However, it is merely for information.
    With automatic reorder point planning and forecast-based planning, the system determines and adjusts the value automatically for forecasting purposes.
    Hope ths solve ur problem
    please reward points
    Regards
    Sunil

  • Static Vs Dynamic Safety stock

    Hello Gurus
    I want to know the following
    1. Whats a Dynamic Safety Stock ?
    2. The basic difference between  Static Vs Dynamic Safety Stock
    3.In which business scenario do we use a Dynamic & in which cases Static safety stock -

    Dear Raja,
    There are two types of availability checks
    1) Availability Check for stock types in Inventory Management (Static Availability Check):
    This check takes only the existing stock at the time of entry into account. This check is carried out automatically & no setting can be made for it in the system .It covers the relevant stock affected at the plant, storage location & special stocks level. The stock affected is determined via the movement type.
    Ex: If you enter transfer posting with mvt 321 for 20 nos from Quality to unrestricted the system checks whether 20 nos.are actually available in Quality stock
    2) Check of available stocks from the view point of MRP (Dynamic availability check):
    In this case in addition to stock physically available in warehouse, here planned receipt & issues can also be taken into account. This check enables you to prevent an already reserved quantity from being withdrawn or reserved for another purpose.
    For Ex; Today we have a stock of 100 nos. 25 pieces are reserved for withdrawal tomorrow & another 25 nos are reserved for day after tomorrow which means only 50 pieces are available today. If you try to create another reservation of 60 nos today system will give warning or error message.
    Hope this will clear your concept
    Vivek

  • Minimum safety stock

    Hi,
    I maintained minimum safety stock as-50 in MRP2 view while creating material master, my client requirement is this minimum safety stock should not be issued at any cost, without enhancement from abap consultant i need to maintain this safety stock.
    can anyone help me to cose this issue.

    Hi,
    Minimum Safety Stock
    The quantity that defines the lower limit for safety stock. This value cannot be exceeded.
    Use
    Defining a lower limit can influence the following:
    material master data maintenance
    The safety is checked to see if it is greater or equal to this lower limit.
    forecasting
    The lower limit is checked if you use an availability indicator which shows, according to customizing settings, if the safety stock is to be calculated again in a forecast.
    If the safety stock is lower than this level in forecasting, the safety stock is automatically increased to the value of the lower level.
    Dependencies
    The safety stock must always be greater or equal to this lower level.
    Hope this helps.
    Revert if you need more details.
    Regards,
    Tejas

  • Safety stock alert

    If total stock of a material goes below safety stock user can get a message at inbox as an safety stock alert...
    How can be the scenario configured????????
    Please suggest mmmmmme.......

    Dear Subhjit,
    You can get a mail whenever you stock goes below a defined limit with the help of Early Earning system.
    Here you can define certain characterstics with predefined conditions like Stock < 1000 Kg, and whenever those conditions comes automatically a mail goes to Id given in follow up section.
    Regards,
    Sachin

  • Forecast execution is resetting safety stock

    I have MRP set up for CBP (VV MRP Type). I maintain a static safety stock value. When I run my forecast, without changing the forecast model or any other forecast values, the system resets the safety stock to zero. I'm struggling to figure out what is causing this. Just a stab in the dark, but can the 'reset automatically' flag have something to do with this behavior?
    Thanks, Vlad

    Hi,
    Please check the below link...
    http://www.sapfans.com/forums/viewtopic.php?f=6&t=346330
    Try to explore on service level field which is in the material master MRP2 view.
    Hope it may help you...
    Kuber

  • Rounding Value in Safety stock

    Hi All,
    Can anybody tell me about rounding value in Safety stock calculation.
    e.g. If safety stock is 1.710 then system should round it up to 2.0. what are the settings/customization requried to do so.
    Waiting for your earliest response.
    Thanks,
    Ambarish.

    Hi Edgar,
    The requirement is...When safety stock is calculated then in material master MRP2 view it should round off the value automatically.
    e.g.
    Safety Stock = Factor R* sq root (RLT/7 * MAD) where RLT = 7/6*(Pur Processing time + GR processing Time) + Planned delivery time.
    So the value of safetystock comes in decimal/fraction and the requirement is it should round off to next level.
    if value = 1.710 then system/logic should round off to 2.0.
    MRP type = VZ
    Thanks & Regards,
    Ambarish

  • Dynamic Safety stock calculation based on Future Requirements

    Dear All PP experts
    Our company wants to calculate the Dynamic Safety stock based on requirements in future period. Based on Standard SAP, it calculates dynamic stock based on current period only. So is there any way to do that. We are using MRP type PD.

    Use MRP type VM(Automatic reorder point plng) for Dynamic safety stock calculation.
    Also you can use coverage profile calculating dynamic safety stock.
    Use Tcode OMIA to define the coverage profile.
    For example if 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.
    Regards
    S.Senthil

  • Refill safety stock based on a certain leadtime

    Hello,
    is there a way to refill / replenish your safety stock based on a certain leadtime ?
    as now MRP requests to get in components today or in a week , while they have a leadtime of several weeks.
    for example :
    i have put a fixed safety stock of 300 pcs on a component.
    This component has a leadtime of 5 weeks
    i received an order for 50 pcs to be delivered in 1 week.
    So we ship this from our safety stock.
    Now MRP is creating demand to get 50 new pieces of this component to be delivered in 1 week ( to fill up again the safety to 300 pcs )
    But i would like that MRP asks to order this component on the leadtime of 5 weeks
    As it will not be possible to get this component in on 1 week.
    best regards

    Thanks Avinash for your reply,
    i also noticed that safety stock gets the highest priority demand and that's probably why i couldn't find a solution using safety stock.
    Is there an other way how i should handle this?
    Is there a way where a replenishment in oracle is done based on leadtime?
    as i mentioned before, i want to get my stock automaticly replenished based on a component/product leadtime when i get under a certain stock level.
    I'm currently thinking to change the planning to min-max planning or reorderpoint planning and as soon as my stock comes under the minimum level,  oracle will propose to refill the stock. But also here i don't know if oracle will use the leadtime to create new demand.
    i still need to test this.

  • Safety stock, forecasting doubts

    Can anyone guide me on my doubts,
    1) Safety stock : While describing safety stock in oracle, we are mentioning date and quantity. Take a example - item = xyz, Date = 01 Jan 2012, Qty = 10. is it means that 01 Jan 2011 onward, stock level of item xyz should be atleast 10. If it is less that 10 after 10 Jan, then suggest planned order from ASCP.. ?
    2.1) I can see that we can manually mention safety stock, system will calculate safety stock. In case of manual, xyz item attribute should be 'Not MRP" Planned. I can mention item, date and qty for in safety stock form.
    2.2) In case of system to calculate Safety stock, I have mentioned attribute value as " MRP planned", mentioned safety stock days as well. Here I have created a forecast and ran "Reload safety stocks" with method as "User defined %" with forecast created for SS calculation. Now I can see corresponding newly created SS in system.
    Now I have ran data collection with calculate safety stock = Yes, and after than launched plan as well. But I am not able to see both type of safety stock in ASCP workbench. I will say, I am not able to see any safety stock demand in workbench in any one of organization. Like to inform you that while doing collection, I have selected all organizations which are enabled and also same was selected while launching plan.. so whats wrong and so not able to see any safety stock demand in system.
    3) Forecasting: I can put forecasting at component instead of products level ( ie finished good). Now suppose, I have kept forecasting at component level, means I have mentioned component item, qty and due date in forecast form. Now ASCP will consider this as demand and drive material, may suggest planned order. Now same time, I have booked a SO, having a products, which requires that forecasted component to do assembly. As there is demand against forecast and demand for SO, will drive material and this will be duplication. So netting of forecast is must, which we can do through forecast consumption. Now in my scenario, I have mentioned forecast for child in forecast and SO is booked against finished item. Now my question is - is there any provision for component level consumption based on finished good SO.. ?
    Let me know if anyone needs more clarity on above case,
    Thanks and Regards,
    Dipak

    Thanks Partha your help. Following solution is working on MRP, but it seems that not working on ASCP. I am pasting process here, Here V is long LT item.
    1) Define a planning bill forecast, consider FC00. This contains aggregated demand of V against a particular date.
    2) We will explode forecast from FC00 to FC01, where you can see forecast against component of ‘planning bill item’ along with Qty and date. Qty will be derived from planning percentage mentioned in planning bill.
    3) In order to convert these forecast demand in purchase order, we have to use a plan.. say ‘Small Plan’. Purpose of this plan is to consider ‘Forecast FC01’ only as demand ( ie do not consider any SO, On-hand etc for calculation ), and create a supply by release planned order. Here needs to run collection and also needs to mention demand schedule as ‘FC01’ in plan parameter.
    4) Now all planned order as per forecast will be released and converted either requisition / PO. This may be firm / non firm.
    5) Now define another Master plan, ( in order case, this plan will be global plan) which consider all supply and all demand sources. But ensure that we will not mention FC00 / FC01 forecast in this plan demand schedule. This plan will consider PO / requisition supply created via ‘Small Plan’, and will peg to actual SO. This will not peg to FC 01 as we have not attached this forecast to master plan demand schedule.
    6) Now if SO dependent demand of V is less than PO qty, then master plan will suggest to raise PO vice versa it will suggest to cancel / re-schedule in –out. We can filter such suggestion by exception / action / supplier name etc. So we will NOT do cancellation / reschedule out, but we will do re-schedule in if possible. This will ensure that we will have enough supply of V irrespective of SO demand.
    From above, we can use planning bill as input for long LT items planning and output will purchase order in advance of SO, also consumption ( indirectly) of forecast can happen. If we will mention ‘include past due forecast = 0’ in planning parameter, then automatically past forecast will be excluded from planning.In addition, we can use master plan ‘supply-demand’ workbecnch output for monitering SO demand trend with forecast entry done by planner.
    Now am checking on ASCP and believe that it will work in ASCP as well.
    Thanks for support ,
    Dipak

  • How much to order , reorder point and Safety stock calculation in SAP?

    Existing Client is Distribution company , the Challenge is how much order , when to order and how much safety stock we need to keep for Material in SAP?
    Limitations with Client System:
    u2022The existing system does not enable purchasing to have visibility to firm (open sales orders) and planned (customer forecasted) demand for a material.
    u2022If a sales order is placed that consumes all of the inventory available, the purchasing department is not notified automatically to replenish the stock
    u2022The system in place currently does not enable the organization to maintain a level of safety stock.
    u2022If inventory is logically allocated to a priority customer based on their forecast, there is no way to ensure that inventory is reserved for the priority customeru2019s orders u2013 other sales orders often consume it.
    u2022If a material is backordered with several sales orders waiting for parts, the sales orders are allocated based on earliest requested delivery date upon receipt of the part; there is no way currently to allocate the stock across the open sales orders if it is determined that is the appropriate course of action.
    Thanks
    Sweth

    Sweth, you are asking for consulting, and in my opinion it is way beyond what can or should be reasonable to achieve in such a forum. You are asking complex questions, that most probable have more than one possible answer.
    I suggest that you get on-site help from a knowledgeable and experienced consultant. These are crucial business issues, and should be dealt seriously.

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