Target stock

[Former Member]

Some one please explain me the difference between target stock & safety stock key fig . In standard planning books , both gets value from a macro function involving saftey days supply & saftey stock & showing same values

[Former Member · Accepted solution]

Hi,

Here are extracts from SAP glossary:

Safety Stock:

The quantity of stock that is always available in the warehouse to fulfill unexpectedly high demand, or that can be used in production if there are time delays.

Target stock: Level to which the stock of a material at a customer is filled up by the replenishment process. The target stock can either be defined manually or calculated by a forecast.

The simple difference is

Safety stock is the stock that you use to for smooth Production ( avoid any ups and downs)

Target stock is the stock you maintain so that you can ensure deliveries to customer in time.

[Former Member]

Safety stocks are intended to balance out unforeseeable requirements, due to forecasting errors, breakdowns in production, or seasonal fluctuations in requirements.

You use the target stock level to cover extreme requirements or smooth out production, The target stock level is a value for the available warehouse stock level that you want to reach through planning. The way its used in planning books can be different , and would depend upon how that key figure is being populated by macro function and what are the input fields its taking