Information

Title	How is Safety Stock Calculated?

Summary	Shows how is the Safety Stock factor in Advanced Replenishment calculated

URL Name	How-is-Safety-Stock-Calculated

Resolution

Safety Stock is automatically calculated when any of the following factors for an item are changed within Advanced Replenishment.

1. Demand Forecast
2. Demand Deviation (MADP)
3. Lead Time
4. Lead Time Variance
5. Service Level Objective
6. Buying Multiples
7. Minimum Quantity
8. Convenience Pack
9. Order Cycle

Increases to factors 1 through 5 will increase Safety Stock.
Increasing factors 6 through 9 will decrease Safety Stock.

Products	Advanced Store Replenishment Client Server; Advanced Warehouse Replenishment Client Server

Module	BASE

Version	ALL

Error Message Code

Cause

Additional Information

Safety Stock is a required element of the Suggested Order Quantity calculation for all SKUs and Items in Advanced Replenishment. Safety Stock is needed to maintain the item's Service Level Goal.

From version 7.9 of Advanced Warehouse Replenishment and version 8.0 of Advanced Store Replenishment, you can also make use of the Manual Safety Stock function to override the system calculated Safety Stock amount.

Publication Status	Published

How is Safety Stock Calculated?

Information