The system calculates the average daily requirements using the following formula:

Requirements in the specified number of periods
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Number of days within the total period length

The system calculates the statistical range of coverage using the following formula:

Available quantity at the respective date
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Average daily requirements

The statistical range of coverage then corresponds to the target range of coverage if no requirements shortage or excess requirements exist.

You determine an interval for the calculation of the safety stock level with the minimum and maximum range of coverage. The system checks whether the statistical range of coverage is below the minimum range of coverage. If this is the case, the system recalculates the safety stock quantity in the next planning run using the target range of coverage. If the maximum range of coverage is exceeded, the system will display an exception message.

The minimum stock level at the respective date is calculated using the formula:

Average daily requirements * minimum range of coverage

The maximum stock level at the respective date is calculated using the formula:

Average daily requirements * maximum range of coverage

The target stock level represents the safety stock level:

Average daily requirements * target range of coverage