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.

Similar Messages

  • Pls tell me the exact formula for calculation of Safty Stock with quality example

    Pls tell me the exact formula for calculation of Safty Stock with quality example

    Hi Devendra,
    safety stock is a quantity of stock which should be planned to be in inventory to protect against fluctuations in demand or supply. Therefore it is considered in planning.
    The Product Planning Details screen is mainly a planning screen, giving an overview on the planning situation for a product in a planning area. The projected stock reflects the planning behavior, displaying the shortages relevant for the planning run.
    As the safety stock has to be always in stock, the projected stock takes it into account as an immediate demand. That is why it reduces the projected stock, for example, if the stock on-hand is 0, then the initial planning situation for the product with a safety stock shows a negative projected stock.
    For more information please check the help document “Material Planning Settings “ under section safety stock which explain with pictorial rep.
    hope it help you.
    Regards,
    Suresh

  • Need to send a mail while safty stock goes down

    Dear experts,
    I Need to send a mail to concern persion while stock goes down from safty stock. We plan to put a check at the point of MARD table updation, Because we not able to put a check at the all transaction codes, So please LET ME KNOW HOW TO PUT A CHECK AT STANDARD TABLE UPDATION?
    Thanks in adv,
    jayakumar.M

    Hi Jai,
    According to my understanding,
    As soon as the stock goes down from the safety stock a mail should be triggered.
    Probable solution (in my opinion)
    create a flag in the table set it whenever the stock value goes down.
    make calculations like (safety stock as today - safety stock previous date) = 0 if not set the flag and construct a workflow withe receiver settings based on the flag field and trigger a mail to the concerned person.
    This is just my idea.
    Try it and revert
    Thanks and Regards
    Srikanth.P

  • Stock calculation report in mm module

    Hi all,
    I have developed report for stock calculation in mm module. my opening stock and closing stock is not matching with that of MB5B.can anyone provide the guidance into this as I have worked on mm reports.
    Regards,
    Harshada

    declarations:
    * Structure type Declarations
    TYPES : BEGIN OF STYPE_MSEG_LEAN,
               MBLNR             LIKE      MKPF-MBLNR,
               MJAHR             LIKE      MKPF-MJAHR,
               VGART             LIKE      MKPF-VGART,
               BLART             LIKE      MKPF-BLART,
               BUDAT             LIKE      MKPF-BUDAT,
               CPUDT             LIKE      MKPF-CPUDT,
               CPUTM             LIKE      MKPF-CPUTM,
               USNAM             LIKE      MKPF-USNAM,
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               BUKRS             LIKE      T001-BUKRS,
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               WAERS             LIKE      MSEG-WAERS,
               ZEILE             LIKE      MSEG-ZEILE,
               BWART             LIKE      MSEG-BWART,
               MATNR             LIKE      MSEG-MATNR,
               WERKS             LIKE      MSEG-WERKS,
               LGORT             LIKE      MSEG-LGORT,
               CHARG             LIKE      MSEG-CHARG,
               BWTAR             LIKE      MSEG-BWTAR,
               KZVBR             LIKE      MSEG-KZVBR,
               KZBEW             LIKE      MSEG-KZBEW,
               SOBKZ             LIKE      MSEG-SOBKZ,
               KZZUG             LIKE      MSEG-KZZUG,
               BUSTM             LIKE      MSEG-BUSTM,
               BUSTW             LIKE      MSEG-BUSTW,
               MENGU             LIKE      MSEG-MENGU,
               WERTU             LIKE      MSEG-WERTU,
               SHKZG             LIKE      MSEG-SHKZG,
               MENGE             LIKE      MSEG-MENGE,
               MEINS             LIKE      MSEG-MEINS,
               DMBTR             LIKE      MSEG-DMBTR,
               DMBUM             LIKE      MSEG-DMBUM,
               XAUTO             LIKE      MSEG-XAUTO,
               KZBWS             LIKE      MSEG-KZBWS,
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               oiglcalc(01)      type  c,                     
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              SJAHR    LIKE      MSEG-SJAHR,    " Year        
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    TYPES: STAB_MSEG_LEAN        TYPE STANDARD TABLE OF STYPE_MSEG_LEAN
                                 WITH KEY MBLNR MJAHR.
    * Data Declarations
    DATA : G_S_MSEG_LEAN         TYPE STYPE_MSEG_LEAN,
           G_S_MSEG_UPDATE       TYPE STYPE_MSEG_LEAN,         
           G_T_MSEG_LEAN         TYPE STAB_MSEG_LEAN,
           AKTDAT                LIKE SY-DATLO,
           INDEX_2               LIKE SY-TABIX.
    DATA: BEGIN OF IMSWEG OCCURS 1000,
            MBLNR LIKE MSEG-MBLNR,
            MJAHR LIKE MSEG-MJAHR,
            ZEILE LIKE MSEG-ZEILE,
            MATNR LIKE MSEG-MATNR,
            CHARG LIKE MSEG-CHARG,
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            DMBUM LIKE MSEG-DMBUM,
            BUSTM LIKE MSEG-BUSTM,
            BUSTW LIKE MSEG-BUSTW,                              
            oiglcalc(01)         type  c,                      
            oiglsku(07)          type  p  decimals 3,      
            insmk                like      mseg-insmk,       
          END OF IMSWEG.
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            MATNR LIKE MSEG-MATNR,
            SHKZG LIKE MSEG-SHKZG,
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    Edited by: Kartik Tarla on Aug 5, 2010 7:06 PM

  • Need to send a mail while safty stock goes down compare with actual stock

    Dear experts,
    I Need to send a mail to concern persion while stock goes down compare with safty stock. We plan to put a check at the point of MARD table updation, Because we not able to put a check at the all transaction codes, So please LET ME KNOW HOW TO PUT A CHECK AT STANDARD TABLE UPDATION?
    Thanks in adv,
    jayakumar.M

    Your best bet may to be place your check in the a user exit for goods movements.  The enhancement is MB_CF001, the component is EXIT_SAPLMBMB_001.
    Hope this helps,
    Mark

  • 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.

  • Safty stock

    can any one tell how to make use of Safty stock for delivery creation for customer. as some times we don't have the req. quty open for delivery/ stock tranfer.
    thanks in advance

    we can do it by making the avalibility check KP in MRP 3 tab of material master. then create the sales order.
    chcek and tell it works or not. But note It'll not check the availiability infuture if you not change the status.

  • 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

  • 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

  • APO and minimum safty stock

    Hello,
    in R/3 we maintain for some products the minimum safty stock field.
    Is it within the standrd possible to get this field over to APO. I saw there a field min safty stock but it's still empty.
    kind regards,
    Bernhard

    Hi Bernard,
    This field is used as a check criterion for the safety stock value to be maintained in the material master. If the safety stock maintained is lower than this value, then it updates the safety stock to this value in material master. As safety stock is transferred to APO as SB method then this minimum safety stock value ensures that atleast this value is  taken into consideration during planning.
    Let me know if it helps.
    Regards
    Gaurav

  • Opening Stock and Closing Stock Calculation

    Hi,
         My report requirement is to display the material, opening stock for the lower date, closing stock for the higher date and the in between all stock operations..how to fetch the opening stock and closing stock for a particular  material ???.. what are the tables and fields for calculating them??..
    Thanks,
    Sri
    Edited by: Sri on Feb 13, 2009 8:33 AM

    Hi
    We have done a similar reports. One showing opening stock/Closing stock and another one showing all the transactions for a particular day. What we did was we developed a program to fetch data from MARD table for unrestricted, blocked & Qulaity stock(Our requirement talks only about these 3 stocks). And we scheduled the program exactly at system time 00.00 hrs with A class job.(today's closing day stock is nothing but tomorrow's opening stock)
      And for the second report which needs to pick all the transaction for a particular day, we picked it from MB51 entries. It is nothing but query between MKPF and MSEG.
    I hope this helps.

  • Opening and Closing Stock Calculation In SAP BPC 10.0 NW

    Hello Experts,
    Need your guidance on this calculation.
    BI Cube: Receipts and Issues only Available on day basis
    BPC Report / Cube Context
    Product = Product1, Product2,
    Account = receipts, Issues, Opening Stock, Closing stock,
    Flow = Other
    Audittrail = Input
    UOM = QTY
    rptcurrency = LC
    Category = Actual
    TIme = All Periods (Monthly)
    Plant = Plant1, Plant2, Plant3, Plant4
                                       In the Cube I don't Have Opening Stock, without Which I cannot calculate Closing stock.
    Scenario: If I Enter Manually Opening stock for all products at some starting point, say In Year 2008 Jan.  How To take this closing stock of this month automatically to next month opening stock and So on and so forth to following Periods? Is it possible through "Carry Forward Business rule" in this case, as Closing stock is a calculated value using Member dimension Formula. I am having receipts and issues in Account dimension.
    Dimension Formula used:    Closing Stock = Opening Stock+Receipts- Issues.
    Please find attachment of the report screen shot.
    Thanking you
    Praveen

    Hello Vadim,
    1. The Cube storage Type is "Periodic".
    2. Acctype of the account dimension is "AST"
    3. Time Dimension Is based on Month.
    ID
    Description
    RELEVANT
    Base Period
    CLOSED
    Level
    Month Number
    Period
    TIMEID
    Year
    Calendar
    2006.01
    2006 Apr
    1
    MONTH
    1
    APR
    20060100
    2006
    2006.Q1
    2006.02
    2006 May
    2
    MONTH
    2
    MAY
    20060200
    2006
    2006.Q1
    2006.03
    2006 June
    3
    MONTH
    3
    JUN
    20060300
    2006
    2006.Q1
    2006.04
    2006 July
    4
    MONTH
    4
    JUL
    20060400
    2006
    2006.Q2
    2006.05
    2006 August
    5
    MONTH
    5
    AUG
    20060500
    2006
    2006.Q2
    2006.06
    2006 September
    6
    MONTH
    6
    SEP
    20060600
    2006
    2006.Q2
    2006.07
    2006 October
    7
    MONTH
    7
    OCT
    20060700
    2006
    2006.Q3
    2006.08
    2006 November
    8
    MONTH
    8
    NOV
    20060800
    2006
    2006.Q3
    2006.09
    2006 December
    9
    MONTH
    9
    DEC
    20060900
    2006
    2006.Q3
    2006.10
    2007 Jan
    10
    MONTH
    10
    JAN
    20061000
    2006
    2006.Q4
    2006.11
    2007 Feb
    11
    MONTH
    11
    FEB
    20061100
    2006
    2006.Q4
    2006.12
    2007 Mar
    12
    MONTH
    12
    MAR
    20061200
    2006
    2006.Q4
    2006.Q1
    2006 Q1
    3
    QUARTER
    3
    Q1
    2006
    2006.TOTAL
    2006.Q2
    2006 Q2
    6
    QUARTER
    6
    Q2
    2006
    2006.TOTAL
    2006.Q3
    2006 Q3
    9
    QUARTER
    9
    Q3
    2006
    2006.TOTAL
    2006.Q4
    2006 Q4
    12
    QUARTER
    12
    Q4
    2006
    2006.TOTAL
    2006.TOTAL
    2006
    12
    YEAR
    12
    TOTAL
    2006
    Thank You
    Praveen

  • Safty stock level

    HI Gurus ,
    I was just wondering if I I could get any assistance from you for following ,
    I have the following scenario that i have a question for.
    Safety stock is set at 140 units
    Actual stock is at 150 units
    An order was placed for 20 units. As the stock would fall below 140, the
    order is not able to be picked (10 would u2013 but not the last 10)
    MD03 is run and a purchase requisition is flagged for 600 units. The
    requisition is confirmed to a PO.
    Why then, can i not deliver the order that will take the stock below the
    safety stock level? Even though there is an order taking the stock above
    the safety stock level?
    Many thanks in advance!!

    hi Amod,
    In the std sap system, the safety stock is provided so as to maintain a level of the stock in the wareshouse.....As we know the reoder point is calculated and is set as per the calulation in which safety stock also plays a big rule...
    Please check whether the reorder point defined  in the system is proper, does the litlle decrease in the safety stock affects the reorder point.....the procurement is only triggered when the stock falls below the reorder point....
    I think you shd check the reorder point first.......
    Hope its helps....
    Regards
    Priyanka.P

  • 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

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