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CTM - Method for calculating safety stock SM

Former Member
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Hi All,

Can anybody tell me about the method for calculating safety stock SM which is Max.of Safety Stock and Safety Days'Sup.from Loc.Prod.Master? How does the system do the comparison between two values and its relevance to CTM ?

Thanks in advance

Ehsan Ahmed

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi

As the previous answer says, Safety Stock is an absolute value and is entered in the Product Location record in the Base UoM you are using. Safety Days' Suppy is the number of days' cover you require against demands and is therefore dynamically calculated for each planning bucket so that the Total demand for the number of days you entered is added together for each bucket and this is the value of the Safety Stock that is then required to be maintained.

Safety Stock Method SM means that the Safety Stock is then calculated against the greater value of the two, which may be different for each planning bucket. CTM should then use this to try to cover the demand for a bucket as well as leave enough stock available at the end of the bucket to meet the Safety Stock calculated.

Hope that helps.

Ian

Answers (1)

Answers (1)

Former Member
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Hi,

I case of absolute value you need to maintain the actual quantity of the product you require as safety stock, while in case of safety days supply the system calculates the safety stock quantity by adding the demand for the number of working days starting today that you have maintainedas safety days supply.

After calculating both the quantities it takes maximum of both, this is helful in case you have to maintain certain stock level at a location even if no demand is present at that location.

The choice of strategy is dependant on your business logic.

Thanks,

Sanjog