Calculating the Minimum, Maximum and Target Stock Level (SAP Library

Calculating the Minimum, Maximum and Target Stock Level

Prerequisites

In Customizing for MRP, you have defined the ranges of coverage for the individual time periods in the range of coverage profile itself using the IMG activity Define range of coverage profile (Dynamic safety stock).

You can define the ranges of coverage for up to three time periods, whereby you can maintain different minimum, maximum and target ranges of coverage for each period.
In addition to the ranges of coverage for the three periods, you can define different ranges of coverage for particular periods. This can be useful when, for example, you have to plan using a higher safety stock level due to increased demand in the months just before Christmas.

Process Flow

During the planning run the system checks whether there are any date-specific ranges of coverage on the dates of the MRP elements (requirements, planned orders, and so on). If this is the case, the system uses these different range of coverage values. If there are no date-related range of coverage values on these dates, the system uses the values that you have maintained for the three periods.

The system calculates the stock levels for the corresponding time periods using the following formulas:

Minimum stock level: average daily requirements * minimum range of coverage
Target stock level ( = dynamic safety stock): Average daily requirement * target range of coverage
Maximum stock level: average daily requirement * maximum range of coverage