Dynamic safety stock in net requirement calculation

[Former Member]

Hello pp colleagues !

My client need that the dynamic safety stock can be available for planning , that means, it can also be used to cover requirements. Similar that the safety stock works (Production>Material Requirements Planning>Planning>MRP Calculation>Stocks>Define Safety Stock Availability) .

It is posible, if yes, can you explain to me how can I do it  ?

Thanks a lot for your comment

Regards

Vero

[former_member196530 · Accepted solution]

Hi ,

Please refer the following on Dynamic Safety Stock in MRP net requirement calculation -

Dynamic Safety Stock: 

If the option Define Range of coverage profiles is chosen in IMG (Tr.Code
OM1A) you can determine a safety stock level that takes into account: 

1. Requirements. 
2. Range of coverage 

The limiting factors to the above are: 

1. Maximum and minimum range of coverage ( defined period , that is month,
week or PPC planning calendar) 
2. Determination of various periods for the
validity of the range of coverage. 

The system uses the formula: 

Dynamic safety stock = average daily requirements (ADR) x Range of coverage 

ADR = Requirements in the specific period / number of days in the total
period length (defined period x standard days) 

Please note here that if you carry out the planning run even in the middle of
the month the system will include even the requirements planned at the beginning
of the month. 

Please also note that you can determine the range of coverage for a maximum
of 3 periods. 

1. Range of Coverage in the First Period 
2. Range of Coverage in the
second period 
3. Range of coverage on the rest of the horizon 

However you have the option of maintaining different coverage for each of
these periods. 

Based on your customization the system determines the number of days used for
calculating your average daily requirement 

Minimum Stock Level (mSL) = ADR x minimum range of coverage 
Target Stock
Level (Dynamic Safety Stock this is DSL) = ADR x Target range of coverage. 

Maximum Stock Level (MSL) = ADR x maximum range of coverage. 

Having confirmed the above, I will now try and explain through an example how
the system calculates the Dynamic safety stock: 

Presume that the system has determined the ADR as 25 Kgs for a material. 

You have set the following in customizing: 

Minimum Range of coverage = 2 days 
Target Range of coverage = 6 days 

Maximum Range of coverage = 10 days 

Now the System determines the following; 

mSL = 2*25 = 50 KGs 
DSL = 6*25 = 150 KGs 
MSL = 10*25 = 250 KGs 

This is what happens for various levels of stock 

Case 1: 

Stock = 45 Kgs 
System Activity = DSL - stock 
Procurement Proposal =
105 Kgs 

Case 2: 

Stock = 60 Kgs 
System Activity = DSL - stock 
Procurement Proposal =
90 Kgs 

Case 3: 

Stock = 155 Kgs 
System Activity = none 
Procurement Proposal = none 

Case 4: 

Stock = 255 Kgs 

System Activity = System checks whether the procurement proposal is firmed
and if yes it displays an exception message. 

Also note that in the case of Time Phased materials planning The range of
coverage is calculated differently. 

Refer -

Dynamic safety stock calculation - ERP Operations - SCN Wiki

Regards

JH

[Former Member · Accepted solution]

Hello !

Thanks for your comment .

I already understood how to work the dynamic safety stock. My new question is if is possible that when I use PIR and Coverage profile, the MRP create only planned order dynamic safety stock and not for PIR.

Can you help me please to clarify my doubt ?

Thanks a lot for your comments

Vero

[rupesh_brahmankar3]

Hello,

Please refer these useful links

Dynamic safety stock calculation - ERP Operations - SCN Wiki

Best Regards,

R.Brahmankar