Value

Formula

Average daily requirement

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

Statistical range of coverage

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

Minimum, maximum and target range of coverage

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.

Minimum stock level

Average daily requirements * minimum range of coverage

Maximum stock level

Average daily requirements * maximum range of coverage

Target stock level

Average daily requirements * target range of coverage