In this IMG activity, you specify the range of coverage profile for calculating the dynamic safety stock.
With the dynamic safety stock , you can determine a safety stock based on requirements and range of coverage. The dynamic safety stock adapts automatically to the changed requirements and is fully available for planning purposes.
You can limit the quantities used in the calculation of the dynamic safety stock by defining maximum and minimum ranges of coverage. You can also limit the period of time by defining different time periods in which the range of coverage is valid.
Periods with different ranges of coverage
In MRP, the dynamic safety stock is added to
the order proposal quantity.
You can display the parameters for calculating the dynamic safety stock in the
MRP evaluations in the "Period Totals" display.
The system uses the following formula to calculate the range of coverage: Average requirements * Range of coverage
The individual parameters are described below:
To do this, you have to specify the ranges of coverage and the number of periods in the 'Define range of coverage' screen.
If you only want to maintain one range of coverage with no period limitation, enter your range of coverage parameters for the first period and leave the field 'Number of periods' blank.
You can also limit the range of coverage in each of the three periods by defining a maximum and minimum range of coverage. The system checks whether the actual range of coverage (available quantity / average requirements) exceeds the maximum range of coverage or falls below the minimum range of coverage. If this is the case, the dynamic safety stock is calculated on the basis of the target range of coverage.
Define the range of coverage profile.