Example of Safety Stock Planning with a Resource Capacity Constraint

This example shows how the supply planning process plans safety stock in a constrained supply plan with a capacity constraint.

Safety Stock Planning with a Resource Capacity Constraint

For this example, let's use these parameters:

  • Item D has a demand on Day 7

  • Resource capacity constraint is 80 units per day

  • Item D has a safety stock amount of 100 units from Day 1 through Day 7

Safety Stock with a Resource Capacity Constraint

In this scenario,

  • The planning process created supply for 80 units only on Day 1.

  • The safety stock quantity of 100 units on Day 1 can't be completely satisfied because the plan can't exceed the resource capacity constraint (80 units) to meet the safety stock quantity.