Dynamic Saftey stock

Question

Hi Friends,
Kindly throw some light on the above topic. I have gone through the help documents & understood quite a bit but not fully though. I have a couple of questions on this: 1. In the Coverage profile settings, If i maintain the "Type of per.length" as '1 - Workdays' will it consider the workdays based on the factory calendar assigned to the plant.
2. What impact does the date on which the MRP is run has on Dynamic saftey stock calculation.
3. If i do not maintain the Min range of coverage, then when are the proposals trigerred.
Thanks in Advance,
Srini.

Answer 1

1. In the Coverage profile settings, If i maintain the "Type of per.length" as
1 - Workdays' will it consider the workdays based on the factory calendar assigned to the plant.- Yes
2. What impact does the date on which the MRP is run has on Dynamic saftey stock calculation- yes depends on the date you run the dynamic safety  stcok will change.
3. If i do not maintain the Min range of coverage, then when are the proposals trigerred.- in this case if you have enetred target or max period then it is okay, hence system will take the next min period for calculation
See the example and help below
Define Range of Coverage Profiles (Dynamic Safety Stock)
In this step, you define the range of coverage profile for calculating the range of coverage.
Using the range of coverage functions, you can detemrine a safety stock level that is based on requirements and the range of coverage. The dynamic safety stock is automatically adjusted to changes in requirements and is fully available for MRP.
The calculation of the dynamic safety stock can be limited - on the one hand by entering maximum and minimum ranges of coverage. And on the other you can determine various period for the validity of the range of coverage.
Note
The dynamic safety stock is calculated in the planning run of the order proposal quantity. In the MRP evaluation, you can check the parameters used to calculate the dynamic safety stock in the period totals display.
The dynamic safety stock is calculated using the following formula: average daily requirements * range of coverage
The individual parameters are described below:
Average daily requirements
The calculation of the average daily requirements is carried out using the following formula:
Reqmts in the specified periods/number of days in the total period length
You must maintain the following parameters for the calculation of the average daily requirements:
Period indicator
You use this indicator to determine the calendar period for which you want to carry out the average daily requirements.
Here you can enter the following:
weeks (W)
months (M)
periods according to the planned calendar (K)
Type of period length
You use this indicator to determine the length of the individual periods in detail.
Here you can enter the following:
workdays
calendar days
standard days
If you select standard days as a period length, you must determine the number of days per period in the field, "No.standard days"
If you set standard days as the period length, you must enter the number of days per period in the "NO.standard days" field.
Number of periods
Here, you define the number of periods you use to calculate the average daily requirements.
Determining the range of coverage
You can determine the range of coverage for a maximum of three periods and you can maintain different coveragefor each period.
To do this, you must define the ranges of coverage and the periods in the screen section entitled, "Determine range of coverage".
You also have the option of limiting the range of coverage in each of the three periods by entering a minimum and a maximum range of coverage. The system checks whether the actual range of coverage ( available quantity / average daily requirements) lies below the minimum range of coverage or above the maximum range of coverage. If this is the case, the dynamic safety stock level is recalculated using the informtaion for the target range of coverage.
Example
Average requirements
Reqmts in the 1st period: 1000
Reqmts in the 2nd period: 2000
Calendar period: week
Period length: standard days (5 days)
Number of periods: 2
Calculation of the average requirements:
(1000 + 2000)/(2*5) = 3000/10 = 30
Range of coverage
Range of coverage for period 1: 2
Period 1: 2 weeks
Range of coverage for period 2: 4
Period 2: 3 weeks
Average requirements * range of coverage 1
300 * 2 = 600
This means that for the first two weeks from the MRP date, 60 pieces are planned as safety stock.
Average requirements * range of coverage 2
300 * 4 = 1200
This means that for the following 3 weeks, 120 pieces are planned as safety stock.