Example of Safety Stock Planning with Primary and Alternate Resources
This example shows how the supply planning process plans safety stock in a constrained supply plan that uses primary and alternate resources.
Safety Stock Planning with Primary and Alternate Resources
For this example, let's use these parameters:
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Item D has a demand on Day 7
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Item D has safety stock of 100 units from Day 1 to Day 7
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Primary resource capacity per day is 80 units
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Alternate resource capacity per day is 160 units
In this scenario,
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To meet the safety stock quantity of 100 units, the planning process created supply for 80 units on the primary resource and 20 units on the alternate resource on Day 1.
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The safety stock quantity of 100 units on Day 1 is satisfied because the plan creates supplies on the primary and alternate resource without violating the capacity constraint.