Show TOC

 Extended Safety Stock Planning

Use

Extended safety stock planning within the replenishment planning process of the SAP Supply Network Collaboration (SAP SNC) calculates the safety stock automatically using data you have entered in the system. This includes, for example, a service level that you want to attain through observance of the calculated safety stock. You also enter the current demand forecast as well as historical data via the demand forecast. The system uses the historical data to calculate the forecast error for the demand forecast.

Prerequisites

  • You have assessed your supply chain and determined at which stages you want to plan safety stock.

  • You have defined the specific master data for extended safety stock planning in addition to the basic master data for replenishment planning. This includes, for example, the service level and the safety stock methods in the location product master data. For more information see Master Data Setup for Safety Stock Planning .

Features

The system considers the following factors when calculating the safety stock:

  • Demand forecast and demand forecast error

  • Replenishment lead time (RLT)

  • Service level

  • Safety stock method

The reorder point method that you determined in the location product master data does not influence safety stock planning.

The system determines these factors as follows:

  • Demand Forecast Determination

    • The forecasted demand for a product in a location results from the planned independent demands that you provide the system using the time series type for the forecast (see below).

    • The system determines the demand forecast error from the historical data, which you also specify with the time series type for the forecast.

  • Replenishment Lead Time Determination

    • The RLT for a product at a location is the total time for the in-house production or the external procurement of a product (including its components). The system determines the RLT using the supply chain model.

    • To determine the RLT, the system adds the corresponding production times, goods issue processing times, transportation times, goods receipt processing times, and planned delivery times. If there are alternative procurement options, the system always considers the option that takes the longest time. The system does not consider restrictions on capacity size, lot size, or warehouse stock. Procurement from upstream safety stock is not restricted.

  • Service Level Determination and Safety Stock Method Determination

    • The system determines the service level and the safety stock method from the location product master data ( Lot Size tab page). With the safety stock method you determine the combination of service level and order policy that the system is to consider.

    • During the reorder cycle methods AT and BT the system interprets the target days’ supply from the location product master data as an order cycle.

    • During the reorder point method BS the system uses the target days’ supply from the location product master data to calculate the purchase order quantity.

    • During the reorder point methods AS and BS the system accepts a monitoring interval (period of time between successive reviews of the warehouse stock) from one period.

Activities

On the SAP Easy Access menu, choose Start of the navigation path Supply Network Collaboration Next navigation step Replenishment Next navigation step Safety Stock Planning End of the navigation path and enter the data described in the following table:

Section

Input data

Location Product

In this section you specify the location products for extended safety stock planning. The system plans the safety stock for those location products for which you have determined an extended safety stock method in the master data.

You also enter the planning version and the responsible planner.

Planning Horizon

Enter the time frame for which safety stock planning is to be executed.

History Time Range

Enter the time frame in which the system is to consider the historical data of the demand forecast for calculating the forecast error.

You can execute safety stock planning directly or as a background job. To execute planning in the background, choose Start of the navigation path Program Next navigation step Execute in Background. End of the navigation path No planning service is available for safety stock planning.

The system considers the calculated safety stock during subsequent replenishment planning.