1. Using Supply Planning
  2. Overview of Using Safety Stock in a Constrained Supply Plan

Overview of Using Safety Stock in a Constrained Supply Plan

You can plan safety stock in a constrained supply plan based on user-specified values or days of cover for all items in the organizations associated with your plan.

You can calculate and plan statistical safety stock for end items and plan safety stock in daily buckets and in buckets larger than days, such weeks or periods. You can also:

  • Manually override safety stock quantities for items

  • Recalculate safety stock quantities

  • Override statistical calculation parameters

When in the constraint-based planning mode, the supply planning process fulfills safety stock demand as long as it doesn't violate any constraints. If there isn't enough material or resource capacity to build to safety stock demand, then the supply to meet safety stock demand is shifted out in time until there is enough capacity. The supply planning process calculates the days of cover-based safety stock levels in the absence of any constraints. Then those calculated levels are applied as a target when the plan is run with the constraints turned on. This process provides greater transparency to you regarding how safety stock levels are calculated for items with days of cover-based safety stock.

For more information about safety stock, refer to the Safety Stock in Planning Central and Supply Planning white paper on Oracle Cloud Customer Connect, available at this URL: https://cloudcustomerconnect.oracle.com/posts/e8a4eaff7a

Safety Stock Planning Differences Between Constrained and Unconstrained Supply Plans

There are some differences to planning safety stock in a constrained supply plan compared to an unconstrained supply plan. The way safety stock is calculated for days of cover and the way the supplies are recommended for safety stock in a constrained plan are important to note. In a constrained supply plan:

  • Safety stock based on days of cover is calculated based on unconstrained dependent demand instead of constrained dependent demand.

  • Orders aren't compressed to meet safety stock when purchasing lead time is enforced.

  • Resource and supplier capacity won't be overloaded just to meet safety stock.

Additional Measures for Constrained Supply Plan

For constrained supply plans, the planning process calculates two additional measures for items with days of cover safety stock. These measures are only available for constrained supply plans.

  • Unconstrained Dependent Demand is the unconstrained demand on the need-by date of a supply. This calculated measure is the sum of production forecast, planned order demand, transfer order demand, nonstandard job demand, and work order demand on the need-by date.

  • Unconstrained Average Daily Demand is the daily average for unconstrained demand over a user-specified demand period days for the item.

Safety Stock Methods

You can use these safety stock methods in a constrained supply plan:

  • Days of Cover

  • User-Specified Safety Stock Level

  • User-Specified Time Phased Safety Stock Level

  • Calculated Safety Stock Levels Based on Forecast Error