Safety Stock Calculation Setups

Hi,
Question 1:_
I created a buy item with the safety stock details as below
Method : MRP Planned %
Bucket days : 2
Percent : 100
Also i enabled the MSO: Default Timestamp Safety Stocks to End of Day (23:59).After running the collection plan (Targeted Refresh) my msc_system_items table looks as below
SAFETY_STOCK_CODE : 1
SAFETY_STOCK_BUCKET_DAYS : Nill
SAFETY_STOCK_PERCENT : Nill
and then msc_safety_stocks is also empty.
Please help me to solve the issue.
Question 2:*
what setups should i do to create the safety stock in my plan other than checking the calculate safety stock in plan option.Aslo what plan should i run (constrained or unconstrained)???
Note : we done have inventory optimization installed.
With Regards,
M.Raamjee

Hi Sandeep,
I tried the generating safety stock.I succeeded too..Thanks for the help.But i need your help again for the analysis.
I created a Buy item and i havent mentioned a LT for it.
For safety stock calculation,i mentioned
safety stock Buket days : 2
safety stock percentage : 100
Forecast was 100qty every day from 4/May to 9/May ..
Output was as below
29/Apr/2012 Forecast = 0 Saf.Stock = 76
30/Apr/2012 Forecast =300 Saf.Stock = 100
5/May/2012 Forecast =300 Saf.Stock = 73
14/May/2012 Forecast = 0 Saf.Stock = 24
As per the calculation
( 200/2) * 100% = 100 qty which is matching the qty in 30/Apr bucket.
I need to know how was the other buckets got calculated.
With Regards,
M.Raamjee
Edited by: Ramji on Apr 29, 2012 10:04 AM

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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.
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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

Safety stock calculation

Hi all,
1. How the system calculates the Safety stock requirement for the raw materials?
Requirement is,
I am doing monthly production planning for the FG materials. And i want to keep all the raw materials stock as 15, 30 and 45 days stock as safety stock of the respective FG BOM raw materials. Bu the safety stock requirement for the each raw material is different.
How to get the safety stock requirement quantity for the required raw materials?
Actually I tried with coverage profile and the safety time / range of coverage in the MRP 2. But I did not any results. i think I may be wrong ,when I am working with coverage profile and safety time / range of coverage.
Please suggest me the appropriate solution for the above requirement.
Example,
Month     April
FG Material (XYZ)     1000
BOM for XYZ
Component     Qty     stock
RM1     2     100
RM2     1     150
RM3     1.5     500
As per the BOM the actually requirement for the RM1, 2, 3 are 1900, 850 and 1000 respectively.
I want to maintain the safety stock of the raw materials for RM1 for 15 days, RM 2 for 30days and RM3 for 45 days stock based on the gross requirement qty. So my total requirement as per the safety stock requirements is as below said, for the raw materials like,
RM1 is 2000(gross requirement qty) +1000 (safety stock requirement for 15 days) -100 (available stock) =2900
RM2 is 1000(gross requirement qty) +1000 (safety stock requirement for 30 days) -150 (available stock) =1850
RM3 is 1500(gross requirement qty) +2250 (safety stock requirement for 45 days) -500 (available stock) =3250
How to get the above explained requirement quantities for the raw materials like RM1,2,3.
regards
Srinivas

You should be able to achive this using the Coverage Profile..
Reg
Dsk

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.

Safty stock calculation

Dear all,
I have a querry regrding the Safty stock calculation.
I want system to consider the customer to whom I am issueing the material while calculating the safty stock.
to be precise I dont want to consider the consuption made towards whole sale dealers and want to consider only service customer consumption.
But as long as forecasting is concern I need to consider all the consuptions.
this is required to keep my safety stock qty as low as possible.
Regards
Edited by: Donsandy on Jan 12, 2009 4:16 PM

Hi,
This is not possible using auto-safety stock calculation, as the calculation is based on all consumptions not just customer specific data.
Safety stock is based on 4 factors that could affect the idealistic procurement pattern:
1. Ordering Lead-time.
2. Manufacuring Lead-time
3. Transporting Lead-time
4. Stock conversion Lead-time (or Quality Inspection lead time)
A delay in any or all of the above can have effect on the entire replenishment process and the stock. A buffer stock must be designed to take into account the above coverage. Again the determination of your safety stock depends on the accuracy of your forecast. Higher your accuracy, lower your safety stock.
This relationship between forecast accuracy and service level is denoted by factor R. This also takes into account that the customer demand cannot be always satisfied 100% of the time.
Hence what we have is:
R = Relationship between forecast accuracy and service level (Service Factor)
W = Delivery time (in days) / Forecast Period (in days)
MAD = Mean absolute deviation (parameter for forecast accuracy)
Now If replenishment lead time is greater than the forecast period by factor W then:
Safety Stock = R x Sq.rt. W x MAD
Else
Safety Stock = R x W x MAD
So in other words, to control your safety stock effectively you need to maintain the service level. Lower the service level, lower your safety stock.
Thanks.

Safety Stock Issue

Hello Gurus,
We are in SCM 4.0 and currently we are facing an issue in safety stock calculation.
We run a macro to calculate the safety stock. The safety stock for a particular bucket is calculated by the sum of total demand of next consecutive 4 buckets. The problem is that the macro works fine if we select a single product-location combination but when we select a product at multiple locations combination (aggregated level) the macro doesnt work. The value is not displayed in the planning book. However, we could see the total demand value for that particular bucket.
Hope I am clear and please help me on this.
Thanks,
Sai

Hello all,
I have a quick question:
Do we need to maintain the data at Location-Product Group level to go for Aggregated Safety Stock Planning?
Let me explain my case:
We have the following selections at Location-Product level:
Sel1: Prod1 at Loc1
Sel2: Prod1 at Loc2
Sel3: Prod1 at Loc3
When I make either of these selections individully in the Planning book the safety stock macro works fine but if I make any of these two selections or all the three selections at a time, then the values does not show up at the Total but I can see the values at 'Details' level if I select Location at the Header Information.
We are thinking of Aggregated Safety Stock Planning and We do not mainatain the data at Group level. Can we still go for Aggregated Safety Stock Planning?
Could anyone give me some suggestions on this?
Thanks
Sai

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

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

What is Formula for 'BS' Method of Extended Safety Stock Planning ?

Hello SNP Experts,
I have a Important Question regarding Extended Safety Stock Planning Calculation in SNP Module.
I have read the SCM Help, SDN Forums and SNP Training Course help, but am unable to find the Formula to Calculate Safety Stocks using the Beta Service Level (Method 'BS') for the Extended Safety Stock Planning Methods.
Reading the help, training material, past SDN Questions I do understand the Standard Formula for Safety Stock is ...
S.S = ServiceLevel x SQRT (ReplLeadTime) x StdDevDemand
However there are Factors like below that are definable in the Location-Product Master ...
1. Forecast Error %
2. Replenishement Lead Time Error %
3. Min & Max Safety Stock Levels
4. Beta Service Level
5. Max. Stock Level
How are these Factors used ? What is the Formula using these Parameters to Calculate the Safety Stock ? The Calculation in SCM-APO is not clear from anywhere.
I am specifically interested in the Method "BS".
Can anyone Guide me ? Points Guaranteed if a reply covers the exact question above (I have done some research before raising this question on Forum).
Regards,
Ambrish Mathur

Harish,
I'd seen these forums already. Thanks for responding.
This 'secretive' calculation is quite annoying. If SAP does not Publish any documentation around the Formula, how can the Customer be convinced to use SAP's Safety Stock Calculations (no wonder many SAP Customers are going the 'ToolsGroup' way of Safety Stock Calculations).
On Safety Factor (I saw in your notes) I am aware that
a factor of 2.33 equates to 98.6% service Level from long back based on Normal Distribution. The Formula as known much earlier is this ...
SS = SafetyFact x SQRT (RepLeadTime) x StdDevDemand.
based on Normal Distribution.
However there are new Fields in APO since ...
Is there no documentation whatsoever on how the 2 Fields - 1. Forecast Error %
2. Replenishement Lead Time Error %
are used at all in the SS Calculation ?
Where do these New MasterData Parameters Plug-in ?
The other change now is in SS Planning, the SSs could be different for each Time Bucket in Future. How does Beta Service Level also impact the Calculation ?
Is there a URL / Book someone can point me to ?
Regards,
Ambrish

Calculation of Safety Stock and Reorder Point under Forecast Model T

Hi Gurus!
Happy Holiday!
I would like to ask for your assistance on how the the safety stock and reorder point was calculated with the following values available. I would really appreciate it if you could give me details on the calculation.
Below are the values:
Basic data
Forecast date        01.12.2009        Unit                  CTN
Forecast model       T                 Service level         0.0
Period indicator     M                 Paramtr profile
Control data
Initialization                                Tracking limit        4.000
Model selection      A                 Procedure selection   2
Parameter optimizatio                Optimization level    F
Alpha factor         0,10               Beta factor           0,10
Gamma factor       0,00              Delta factor          0,30
Basic value           5.464-           Trend value          5.603-
MAD                      4.758            Error total              4.722
Safety stock         1                   Reorder pnt.          1
No. of values
Consumption           6                Forecast periods       1
Initial. periods      0                Fixed periods          0
Periods per season   12
Historical data
Period                Original     Corrected value
11.2009                3.000              3.000
10.2009                0.000              0.000
09.2009                0.000              0.000
08.2009                9.000              9.000
07.2009               21.000             21.000
06.2009               20.300             20.300
Forecast results
Period                Original     Corrected value
12.2009                0.000              0.000
Appreciate your assistance!
Thank you and Happy Holidays!
Ji

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.

Safety stock and Reorder point calculation in inventory planning

Hi,
How System does the calculation of own safety stock, and Reorder point, maximum safety stock level at parent and child location while running inventory planning services in SAP APO SPP. does anyone about the calculation please let me know
Regards
Puneet

Hi,
How System does the calculation of own safety stock, and Reorder point, maximum safety stock level at parent and child location while running inventory planning services in SAP APO SPP. does anyone about the calculation please let me know
Regards
Puneet

ASCP and Safety Stock Pegging

Hi,
in our ASCP plan, currently we have items with Safety Stock values manually inserted valid over all planning horizon.
Therefore all the safety stock is NON-TRANSIENT.
Actually we have Priority Based pegging with:
MSC: Include Safety Stocks in Priority based Pegging: YES.
What is appening is that ASCP peg On Hand quantities to FORECAST DEMAND, then pegs other supply type to SAFETY STOCK Demand.
I would like ASCP to peg OH to Safety Stock Demand (DUE on the plan start date) before Forecast demand (due in the future).
Someone knows how to obtain this "feature"?
Thanks in advance.
Giacomo

Giacomo,
I'll give you a few pointers, but this may be difficult to achieve. Try this as a test.
I assume you have a constrained ASCP plan. This question wouldn't be as relevant in an unconstrained plan because the demands would just be calculated and priority pegging isn't that useful. .Is that correct, you have a constrained plan?
The key point is that you mentioned is that you have NON-TRANSIENT safety stocks. This means that you are setting a value due today for 100 units and at the end of the plan, you still want to have 100 units of safety stock planned.
ASCP priority pegging logic has these rules:
1. Any supply quantity that pegs to NON-TRANSIENT safety stock CANNOT be used at a future date to peg to real demands. [It's not going to happen]
2. Any Supply quantity that pegs to transient safety stock CAN be used at a future date (when the corresponding dip in safety stock occurs) to meet demands. [This means that it can release the supply and re-peg to a future demand].
Independent Demands have a seeded demand priority by default. The first two below are set by a profile option, safety stock is always the lowest priority ( a number something like 99999 where the higher value is lower priority)
1. Sales Order = 10,000*
2. Forecast = 100,000*
3. Safety Stock = 999,999 (not sure of this internal value)
Set by a profile with a name like msc: default sales order priority
For priority pegging setup instructions, please see the ascp user guide. The basics would be the use of two profiles mso: demand window size and mso supply window size. This determines how ascp will select and sort your supplies and demands for pegging. It starts at the first demand date or supply date and selects that many future days of demand and supply to sort and then peg.
You also setup a priority rule that determines how ascp calculates priorities for pegging. To accomplish what you want to do, you would have a rule like
1. MDS & Sales Order priority
2. Schedule Date
This is a commonly used example. The pegging process will the select the number of days you have chosen and sort the demands based on their prioirty.
Sales orders are more important (to you) than safety stocks, but not forecasts. You want the safety stock to peg the on hand, not a future forecast. This can only happen because you have mso: demand window size set to a number of days where pegging sees the future demand in the same sort. I haven't seen this requirement (SS higher priority than forecast), so you'll need to test my suggestion.
Set the value of MSC: Default forecast priority = A huge number (higher than 999999).
The intent is to make the demand priority the SAME as a safety stock demand. In this case, with the priority rule I suggested, the schedule date will determine the pegging order.
I think this will get you close. You can view the internal proirity calculated by ASCP for the independent demand by selecting that order in the pegging details and then rightclicking to select the properties. The pegging details wil show you the priority value that was used.
Hope this helps.
Kevin
www.inspirage.com

Dynamic update of safety stock in SAP R/3 systems (ECC 5.0 version)

Hi Friends,
Forgive my newness to SAP. Let me explain the problem i am facing in SAP. I want to identify the parameters to dynamically update the finished goods safety stock for each depot by SKU wise.
Current process :- Safety stock is calculated manually and updated by using Transaction code MS02 in the system.
It would be highly useful if i know the flow in SAP system and how the current process can be changed?
If more info is required i'm ready to give.
Thanks in advance

Hi Mario Adler,
Thanks a ton for ur answer.
Will it update safety stock for finished goods in each depot by SKU wise? Raw material safety stock isn't my concern.
project description : Manufacturer of chemical goods , 70+ products,350 skus
Distribution : factory to depot (bulk volume)
Mother go-down to depot(Stock transfer)
No of depots :33,factory:3,mother go-down -1
Sales forecasting is done in excel for every month and updated to SAP via BAPI. After that DRP,MRP and other runs takes place.
What are all the areas i need to touch in to get the parameters to update the safety stock?
Regards
Arasu
Edited by: Arasu_IIM on Apr 26, 2011 12:52 PM

Safety Stock Calculation Setups

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