Parameters for Safety Stock Calculation

You can configure parameters in which to calculate safety stock quantities as part of Run Plan. The safety stock calculation process outputs to plan data for the related safety stock fields for each item-organization attribute.

The process calculates statistical safety stock levels based on forecasts and forecast error measures.

Define or modify safety stock plan options on the Plan Options page, Safety Stock tab. The safety stock calculation process also outputs values to the plan simulation set specified on the Plan Options page, Scope tab.

Note: The Parameters for Safety Stock Calculation section is available only when one of the following safety stock planning methods is selected:
  • Statistical safety stock for end items, none for all others

  • Statistical for end items, user-specified for all others

The following table lists safety stock calculation parameters that you can select or configure.

Parameter

Description

Use item-specific values

Select to specify whether the supply plan run uses item-specific values in safety stock calculations.

Service Level Percentage

Enter a value between 0 and 100 to set the level of customer service that you want in satisfying the product demand immediately out of inventory.

Apply policy overrides

Select to calculate safety stock for an item and organization combination using policy level overrides. If selected, then you must select a policy assignment set.

Policy Assignment Set

Select the policy assignment set to use for the item and organization combinations that correspond to the segments and service level percentages defined in the Manage Supply Planning Policy Assignment Sets task.

Forecast Error Type

Determines whether the quality of a forecast is measured by using MAD, MAPE, Intermittent, or Demand schedule specific.

Overwrite

Select a value to use to overwrite the previously generated or entered safety stock levels.

Save to collected data

If selected, then the collected data is updated with the safety stock quantities that are calculated and with safety stock quantity overrides.