safety stock

[Former Member]

Hai gurus

In availabilty check i want safety stock to be included.The configuration part iam clear but what actually safety stock means?

Please explain me safety stock.

I suppose saftey stock will include reservation of the material also

With Regards

[Lakshmipathi · Accepted solution]

Dear Saju Som

Safety Stock or Buffer Stock exists to counter uncertainties in supply or demand. For example, a supplier may deliver their product late, the warehouse may be on strike or a number of items may be of poor quality. In addition, a competitor may be sold out on a product, increasing demand. Safety stocks enable organizations to satisfy customer demand in the event of these possibilities.

In short, a minimal level of inventory that a company seeks to have on hand at all times is called safety stock.

thanks

G. Lakshmipathi

[Former Member]

As per the reply has maintained in the configuration and master data has been maintained how much should be the Safety stock in MM02 at MRP level

Regards

[Former Member]

Hi,

Safety Stock: Quantity of stock held to satisfy unexpectedly high requirements in the stocking-up period.

The purpose of the safety stock is to prevent a material shortage from occurring. In order to determine the safety stock level, you must first specify the risk of a material shortage and also the desired service level.

Usually the safety stock will not be used in production.

Prase

[Former Member]

Thanks lakshmi pathi,

will safety stock include reservation also.reservation is another concept

with regards