Calculation of safety stocks with S&OP module?

[Former Member]

Hello,

I have a question concerning IBP functionality:

With SAP APO, in SNP I can calculate safety stocks with the help of a macro function, something that I have already done.

Can I achieve something similar with only the S&OP module of IBP?

I know about inventory optimization, I know that I won't get a time-dependent multi-level safety stock optimization, but: With the information of forecasted demands, forecast accuracy of the past, lead times and required service level, is there a way to calculate what safety stock I need?

Thanks in advance for any helpful insights,

Florian

[former_member242371]

Hi Florian,

I think you can use the existing logic of macro function created in SNP to define the key figure calculation in IBP for safety stock. Are you facing any challenge in configuration or looking for a new logic to configure safety stock calculation?

Thanks,

Rohit

[Former Member]

Hi Rohit,

this is a scoping question. We do not have IBP yet, but are working on to-be process and IT landscape for an upcoming implementation.

So the question came up, to what extent - similar to APO - we would be able to calculate a safety stock within IBP.

If I do understand you correctly, in IBP (for S&OP) there is also a function like the APO SAFETY_CALC macro function that could do this?

Thanks,

Florian

[former_member242371]

Hi Florian,

Yes, you have flexibility to create your desired calculation for key figure SAFETYSTOCK in IBP. As you mentioned that you are already aware about Inventory optimization but want to define a custom calculation, you can do so by defining multiple calculation methods. A key figure can have several levels of calculations in IBP and in your case, you can refer the existing logic of macro in SNP to build similar calculation in IBP for safety stock.

Thanks,

Rohit