Determination of Minimum and Maximum Stock Level
Minimum and maximum stock levels are stock limits for the customer location product that the customer agrees upon with the supplier. The projected stock must not fall below the minimum stock level. For more information, see Calculation of Projected Stock.
The maximum stock level is the maximum quantity of stock that is to be on hand at the customer. You can use different methods to determine these stock parameters.
The following applications use the minimum stock level and the maximum stock level:
Supply Network Inventory
Replenishment planning
The parameters used by replenishment planning depend on the replenishment planning method . For more information, see Replenishment Method
Example
In the Supplier Managed Inventory (SMI)
business scenario, the supplier has to keep the projected stock between the minimum stock level and the maximum stock level at all times.
The following methods are available for determining the minimum stock level and maximum stock level:
Static Minimum and Maximum Stock Level
Customer and supplier can agree on a static minimum and maximum stock level that is always the same in all periods, irrespective of the demand/stock situation.
Dynamic Minimum and Maximum Stock Level
Customer and supplier agree upon a minimum days' supply and a maximum days' supply. The system calculates a minimum and maximum stock level automatically from these values. The demand situation determines the minimum and maximum stock level of a period as follows:
The minimum stock level of a period is high enough to cover the demands in the following periods within the minimum days' supply.
The maximum stock level of a period is large enough to cover the demands in the following periods within the maximum days' supply.
During the calculation of the minimum and maximum stock of a period, the system does not consider the demand of this period.
Dynamic Minimum Stock Level and Static Maximum Stock Level (Enhanced Safety Stock Planning)
You can use the methods AT
, AS
, BT
, and BS
of the extended safety
stock planning. For more information, see Extended Safety Stock Planning.
Note
This option is only relevant for an SCM server installation.
To configure the calculation of the minimum stock level and maximum stock level, you make settings, depending on the method chosen, either in the location product master of the SAP SNC systems or in the partner-dependent location product settings. For more information, see Partner-Dependent Location Product Settings.
Note
Partner-dependent stock parameter are relevant for multisourcing. In multisourcing, the customer procures a customer location product from several suppliers. Different minimum stock levels or maximum stock levels might be required for different suppliers. In the partner-dependent location product settings, you can maintain the stock parameters dependent on the supplier.
The following table provides an overview of which safety stock method and which data you have to configure in the location product master of the SAP GUI on the Lot Size
tab page for the different options.
Settings in the Location Product Master
Option |
Method |
Minimum Stock Level |
Maximum Stock Level |
|---|---|---|---|
Static Minimum and Maximum Stock Level |
None |
= Safety stock in the |
= Maximum stock level in the |
Static Minimum and Maximum Stock Level |
|
= Safety stock in the |
= Maximum stock level in the |
Dynamic Minimum and Maximum Stock Level |
|
Calculated from the days' supply in the |
Calculated from the days' supply in the |
Dynamic Minimum and Maximum Stock Level |
|
= Maximum of safety stock in the |
= Maximum of maximum stock in the |
Dynamic Minimum and Maximum Stock Level (Extended Safety Stock Planning) |
|
Safety stock is calculated. |
= Maximum stock level in the |
You can also edit a selection of settings in the location product settings on the Web UI (not available in the Responsive Replenishment
view).
Note
The Web screen for editing the location product settings uses the term Minimum Stock Level
instead of the term Safety Stock
.