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APO Extended Safety Stock Planning - BT

Former Member
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Hello Guru,

I would like to know which is the formula for the safety stock calculation in APO if I select the safety stock method = BT.

Could you please show me an example in case that all the data (FCT% error, RLT% error, etc..) are in product master.

Finally could you be so kind to explain me how to set the reorder cycle?

Thanks and Regards

Alessandro

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Answers (1)

Answers (1)

Former Member
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Hi,

The beta service level is shortfall quantity driven. Calculation follows as below:

The expected fulfilled demand is divided by the expected total demand.

For example, if the expected total demand is 100 pieces and a beta service level of 75% has been specified, the expected fulfilled demand is 75 Pcs.

Relative Demand Forecast Error in %

This is the Percentage that shows the mean deviation relationship between the forecast demand and the actual demand at demand forecast level. The lower the percentage, the more accurate the demand forecast .

We can specify values of between 0.0% and 999.9%. If the value is 0.0%, the system uses historical data to determine the relative forecast error of the demand. If We do not enter a value, the system assumes that the forecast error is 0.0%.

If we enter a value more than 0.0%, safety stock planning in SNP uses this value as a relative forecast error of the demand. The system does not evaluate historical data in this case.

For example: if we enter 5% figure, then system will adjust 5% more safety stock.

I have not worked on Replenishment Lead Time in %.

I hope this gives some insight.

Regards

Datta

Former Member
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but for example if I have:

Forecast = 100 PC

Service Level= 80%

Forecast Error=40% (No historical data)

what should be the value of my safety stock with the BT method?

Former Member
0 Kudos

Hi,

Forecast = 100 PC

Service Level= 80%

Forecast Error=40% (No historical data)

Safety stock : 112 ( 80 percent of corrected forecast 140)

Here in Safety stock planning profile ( transaction /SAPAPO/SNP_SET_PROF):

Level of Forecast [%] 100

Determine Forecast Error : Master Data

Level of Forecast Error [%] 100

Please check .

Regards

Datta