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Re: How Does SmartOps caluclates Safety Stock

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Here are some basic answers to your questions:

 

we have multiple cross docks and Distribution Points close to our customers  that get replenished by our Regional Distribution C enters(RDC)   (3 tier)  Cross docks can be set up as non-stocking points so no safety stock is calculated for those location.  In a multi echelons supply chain, EIS balances the safety stock recommendation between echelons to minimize the total inventory cost while maintaining target customer service levels.  Inventory is usually pushed close to the customers to achieve the service levels.

 

we would like to know how does Smartops caluclate saftey stock requirements for the Distribution points that are close to customers.  There are many factors used in the calculation of optimal safety stock to meet your service level targets; forecast error and lead time to the DC, for example, play a key part in those calculations.

 

 

what safety stock method needs to be maintained in the master data ? After EIS runs the optimization model, recommended safety stock values are placed in the data sore that are used to feed into the safety stock field(s) in master data in ECC or APO.  This can be done manually for a small supply chain but most customers use our SAP Connector tool kit to build interface feeds from the data store into master data.


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