Static Vs Dynamic Safety stock

[Former Member]

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 -

[former_member581212]

Dynamic safety stock --> The safety stock which is dynamic in nature. ie. changeable is called as dynamic safety stock....this stock may change from time to time...and may be frequently...

Use: Such type of safety stock is req. when you there are frequent changes in the production products...that means if the material production lot is small in size...

Static safety stock --> The safety stock which is constant/same/levelled for the period of time....it also changes but very rarely...

Use: It is seen mostly in the case of the material production with big lots ie. if the production of the material goes on for more or big time..then the safety stock will remain static....

Hope it helps...

regards

Priyanka.P

AWARD IF HELPFULL

[Former Member]

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 This check enables you to prevent an already reserved quantity from being withdrawn or reserved for another purpose.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

[Former Member]

Hi Vivek

It seems you have misinterpreted as availability check .... am looking for Safety stock only ....the diff bet dynamic vs static safety stock & not dynamic avl check....

[csaba_szommer]

Hi,

1. The safety stock level changes based on the requirements

2. Static: stock level is always the same. Dynamic: stock level may change as per the requirements

3. If your requirements are fluctuating, they show seasonality (e.g.) maybe there's no point in using always the same stock level. E.g. if you sell icecream, in winter your safety stock level should be lower than in summer.

http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d2d0c44af11d182b40000e829fbfe/frameset.htm

Regards,

Csaba

Edited by: Csaba Szommer on Sep 11, 2008 10:45 AM

Edited by: Csaba Szommer on Sep 11, 2008 10:51 AM