Independent requirements within dynamic safety stock policy

Hi Community,
I was wondering if we can setup a dynamic safety stock (coverage profile) without using consumption based forecasting? Our forecast is provided through the SCM DP. If yes, which MRP type should we use?
Many thanks for any feedback,
Noël

Hi Noel
Yes, it is possible to use a coverage profile without consumption based forecasting. You can use an MRP type with MRP procedure, such as PD.
See my answer on the following thread for more details about the coverage profile logic on MRP:
Dynamic Safety Stock
BR
Caetano

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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

Dynamic Safety Stock Calculation

Dear All,
We have set Dynamic Safety stock for finish good.
Below is the screen snap for Coverage profile for your reference,
After MRP we have get results as shown in below screen,
Also find Monthly results for the same in below screen,
Can anybody who has worked or Dynamic Safety stock please explain the calculation in detail for this scenario.
Thanks,
Narresh

Hello Naresh
Regarding the coverage profile calculation, I'd like to ask you to go through the following notes, which explain the range of coverage usage in MRP in detail:
217144 - Range of covrage calc. w/ range of coverage profile
217080 - Documentation: range of coverage in MRP
Let me explain to you in more detail the range of coverage calculation during the MRP run.
Calculating the range of coverage serves to determine a dynamic safety stock level based on current requirements. Statistical, in this context, means it is not the actual requirements that are taken into account, but the average daily requirements within a defined period that are calculated by the system.
MRP will execute the following procedure:
The system calculates the average daily requirements using theparameters defined in the range of coverage profile
The system reads the defined ranges of coverage in the range of coverage profile and calculates the minimum, maximum and target range of coverage (see Calculating the Minimum, Maximum and Target Stock Level and Values of the Statistical Range of Coverage Calculation). Thetarget stock level represents the safety stock level.
System checks for every MRP element whether the available quantity is below the minimum stock level. 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.
BR
Caetano

Forecasting Based Planning with Dynamic Safety stock Calculation?

Hi Guys:
Based on the client requirement we are going with forecast based planning i.e based on Sales historical data , rather then buyer determining how much amount of safety stock need to be maintained ,
Can system calculate/propose safety stock based on lead time and service levels set for that particular material?.
how to load historical sales data into the system before go Live , so when they run MRP Run ( using forecast based Planning ) -> Planning orders>PO are triggered? or is there any alternative ?
Thanks
Sweth.

Hi.
Range of coverage profile in material master MRP2 view
The range of coverage profile contains the parameters for calculating the dynamic safety stock. This is a statistical calculation on the basis of average daily requirements.
Use
The dynamic safety stock is calculated depending on the requirements within a specified period and the range of coverage.
Dependencies
The range of coverage profiles (period length for calculating the average consumption, range of coverage, and so on) are maintained in Customizing in the MRP screen.
SPRO>MM>CBP>MRP CALCULATION>Define rage of coverage profile
or
Production>MRP>MRP Calculation>Define rage of coverage profile
Thanks
Diwakar

Dynamic Safety Stock and Calculate based on past consumption

Hello experts,
I have set up my coverage profile in configuration for dynamic safety stock. However, the value is going off of the current net requirements in the system. How do I set it up so that the target stock level (DSS) is determined by 30 days of our past consumption and so many days of near future requirements?
I assume I need to set up the MRP 3 tab in a specific way. These materials that will be using dynamic safety stock are not forecasted, therefore, the material master had PD as MRP type (not VM or VV as discussed for setting DSS with forecasted materials), lot size of DY, and the coverage profile.
Please let me know.
Thanks.

Hi,
Hi the configuration should be like this..
First Create range of actual coverage profile SPRO and enter the following data.
Period Indicator - M
Number of Periods - 2
Type of Period length - Working days
Number of days per period - 30
Range of coverage in the first period - target - 30
Then assign this profile to the material in MRP3 screen in the field range of coverage profile field.
Regards
Prasanna

Dynamic safety stock in PP/DS

Hello,
My question is about how PP/DS uses dynamic safety stock. I use safety stock keyfigure in SNP to calculate dynamic safety stock and make it available for PP/DS. When I run planning heuristic in PP/DS, does heuristic go and execute the macro?
Let me give an example case.
A is header, B is component of A. When I make a full planning run in PP/DS, first A is planned, then using dependent demands from A, B is planned. While planning B, safety stock also must be calculated. Is this process an inteactive process between SNP and PP/DS? I mean, PP/DS creates planned orders for A, then dependent demand generated for B. When it comes to plan B, heuristic calls SNP and macros calculate SS and SS is used in PP/DS heuristic as requirement? Is the process like that? or Do i have to run SNP either online or bacgrounf first, calculate SS there, and then run PP/DS heuristic?
Thanks,
E

Somnath, Harish;
Thanks for your help. I read all these notes and threads. But I could not find the answer to my question.
First of all, I am using SS method MB. not an extended safety stock method.
I want to implement the same SS calculation as in R/3 coverage profile. In coverage profile, average daily requirement is calculated using X weeks of demand, and Y days of SS is calculated. I want to do the same calculation in APO.
We are using PP/DS for short term planning. Here my question is in which way SS is calculated while running planing heuristic in PP/DS. I listed 2 possible ways, can you please tell which way PP/DS work?
1) PP/DS will run for the example BOM structure I gave before. So, in this example, I need to run planning for header material first in order to find dependent demand for component. Then I need to make planning for component. If I calculate SS in SNP before starting to run PP/DS for header material, SS for component is calculated in SNP using the demand calculated before PP/DS planning run. Is this how dynamic SS works?
2) or when I run planning for component, does PP heuristic call SNP macro and calculates SS with the most updated demand situation?
Thanks,
Ergul

Dynamic Safety stock

Hi All,
We are recently implemented dynamic safety stock calculation functionality with "Range of coverage profile'. Functionality working fine But client asking for report stating that how much is the dynamic safety stock.
Is there any way to find out what is our required safety stock(Dynamically calculated) for that material.
Thanks & Regards,
N. Laxman

Hi,
Following is the safety stock calculation procedure
Suggested calculation:
1. Z: NORMSINV(Service level) , for example Z=1.64 for a 95% service level
2. Safety Stock: {Z*SQRT(Avg. Lead Time * Standard Deviation of Demand2 + Avg. Demand2 * Standard Deviation of Lead Time^2)}
Follow the link
http://www.sap-img.com/materials/safety-stock-calculation-in-sap.htm
Edited by: ch pavan on Feb 26, 2010 6:08 AM

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

Dynamic Safety Stock wih Safety daysu2019 supply

Hi
In APO PP/DS, my compagny want to set up for several products, two safety stock :
1- Dynamic Safety Stock in order to prevent when actual usage exceeds forecasted demand
2 - Safety day's to prevent when time it takes to receive a replenishement shipment exceeds the projected lead time (usual problem in our business)
For this two cases we use
1- MB
2 -SZ
So my question, how it's possible to mix this 2 safety stock methods? Is possible to create a custom method or custom heuristic in order to do that?
Thanks for your help
Youri

Hi
We have ever try without success other solutions as :
SM and MM
MB with Good Receipt Time in APO = ( Good Receipt in R/3 + Safety Days )
The only solution seem AT/BT method but we can't make difference between safety stock and safety days during monitoring
Thanks for your help

Dynamic safety Stock "Range of Coverage profiles

Hi Friends,
Need help for Dynamic Safety Stock
I'm new in MM and I want to know how to configure the range of coverage profile in SAP.
I need your help to know the fonctionnality of this profile in SAP and his utility for the business
Please help
Foued

Hi,
Please post on appropriate forum - this is a forum from SAP PI - integration
Thank you,
Regards,
Michal Krawczyk

Stock Coverage profile with more tha 100 days (dynamic Safety Stock)

Hello,
My customer is using dynamic safety stock using coverage profiles up to 95 days.
Now a new requierment emerged which states that they need to extend the coverage to 100, 120 and 150 days of safety stock.
I looked into the config buy as far as I understand it, I can only configurate up to 99 days of coverage in each period!
Anyone had has this requierment form their Customers before and how did they resolve it?
Thanks for any clue.
Bye
Aart

Not in front of system, working from memory here...
In OMIA, there must be a field called No. of periods (or something like that) maintain a value 2 there & for no. of days in a given period maintain 50. This should address the need for 100 days, likewise you can workout for the remaining.
Do a test with the above in your sandbox & let me know if you face any specific issues.

Dynamic Safety Stock - Custom logic

Hi,
Are there any exits / enhancements where we can build customer specific logic to periodically update Safety Stock values in the Material Master (MRP Area)?
Thanks.
Raj

Hi,
Thanks for your response.
We want to maintain a Minimum Stock Level at various Storage Locations periodically. However the value is computed based on certain historical values (and not mere consumption). There is an industry logic which will compute this figure.
We need to find a solution to compute this figure as per logic and use it in MRP for planning along with other requirements (such as Reservations, Customer Orders, Forecast etc.,). Since the count of parts and associated historical values are quite high, computing this offline is tedious.
Is there a better way to address this without Z - Devpt.?
I can provide any other info if reqd.
Thanks.
Raj

Mrp requirement qty including safety stock

I have tested and got results as follows with VB/EX:
RO Point = 10 ea
Safety stock = 5 ea
Stock = 5 ea
But the mrp element generated for 5 ea only.
I need to get requirment qty considering the safety stock also.
HOW TO INCLUDE SAFETY STOCK IN REQUIREMENT QTY?
warm regards
marias

Hi,
the safety stock is relevant when you are carrying out goods issues.
the system will stop you from placing orders against the safety stock (because you don't want to sell this you want to keep it for emergencies) and yet it will allow you to goods issue to a delivery from safety stock (because that is why it is there, to ensure that you have spare items in case of shortages).
You control what can and can't issue safety stock by using different configurations for the availability checks for each function..
So even though the reorder point MRP seems to ignore safety stock it still warns you when you fall below this (with an exception message) and it is still used for goods issues and transfers etc.
Steve B

Coverage Profile - Dynamic Safety Stock

Gurus,
I am running into an inventory planning issue with the profile I have set up for a 28 Day Target Supply:
W1 1000
W2 100
W3 100
W4 100
W5 100
Ideally I end week 1 with ((100100100+100/28)*28) = 400 because at the end of the week that is a true 28 days of forward coverage.
My current envrionment is calculating the coverage as follows ((1000100100+100/28)*28) = 1300. This is creating excess purchase requisitions. How do I get SAP to not count the current week (1000 in W1) in the ADR calculation? Any idea?
-Tim

Mario,
Thanks for following up.
I think the first period suggestion would solve the problem in week 1, but the 2nd period we would run into the same problem.
The week 2 calculation to determine ADR would still count the 2nd week. For example:
WK 1 - 1000
WK 2 - 100
WK 3 - 100
WK 4 - 100
WK 5 - 100
WK 6 - 1000
WK 2 would be ((100100100100)/28)*28) = 400. However, I would want it to be ((1001001001000)/28)*28) = 1300.
This results in us being heavy coming out of a peak, and light going into a peak. Any suggestions?
-Timj

Dynamic safty stock

for dynamic safety stock calculation, system is calculating avg daily req based on PIR maintained in MD61.
I want system should calculate avg daily req based on consumption data.
How to configure this?
Thanks
a prasad

I think you are looking into two different angle of safety stock.
If you want the past consumption data to calculate the safety stock, try using MRP type SS - MRP with safety stock planning. You have to create forecasting view in material master, and run forecast program periodically (MP30 or MP38). The program will update the safety stock for you in material master.
If you use dynamic safety stock (coverage profile), then it will calculate requirement based on future demand. It is calculated average requirement based on PIR, dependent requirements, stock transfer requests, sales order, etc.
So consider which one you want to use.

Independent requirements within dynamic safety stock policy

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