Safety Stock Priority in optimizer settings

[AA3]

Hello ,

can anyone let us know what is the use of Safety stock priority  settings in optimizer and scenarios where they need to be used for.

1) Regard as customer demand

2)Regard as demand forecast

3)Regard as corrected demand forecast.

[Former Member]

Hi,

This depends on how you want to use the 'safety stock' as a constraint while planning with optimizer. You should consider few things while you decide on the level of the safety stock as a planning  constraint. Like you should always maintain safety stock violation penalty cost is greater than the product storage cost. If you dont, then optimizer will not plan for your safety stock.

The same way you can decide on whether you want safety stock violation as a hard or soft constraint by assigning some safety stock violation rule/cost.

So, depending on the business and importance of maintaining a minimum stock level at your inventory you can prioritize your goal of maintaining a stock level at least at product's safety stock.

Like you can prioritize safety stock as demand forecast. So, in case of supply shortage you can use safety stock to meet demands from the customer.

Hope this helps.

Thanks,

Satyajit