SCM Consulting SolutionsSafety Stock Simulation 2018Christian Luehrmann, Business Processes Senior Consultant (SAP Consulting)August 21st, 2018
Releasedfor
customer
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Agenda
1. The challenge: Determination of optimal safety stock levels2. The solution: SCM Consulting Solution Safety Stock Simulation3. Details on Safety Stock Simulation
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The challenge: Determination of optimal safety stock levels
During the process of determining optimal safety stock levels, MRP planners oftenencounter the following problems:
§The desired service level is globally set by the sales department. The direct influence onstock levels and inventory costs can not be determined and is, therefore, not considered.
§No tool allows a calculation of the optimal safety stock levels based on the actualconsumption values for the desired service level.
§For this reason, safety stock are maintained manually. A regular maintenance of the fixedsafety stocks is too time-consuming. Changes in the parameters like decreasing/increasingdemands, shorter lead time are not considered.
§ Calculation of safety stock and reorder points without starting standard SAP materialforecast is possible with the safety stock simulation.
§In the SAP standard an automatic calculation of safety stocks is only possible if the materialmaster forecast is executed.
§A simulation of changing input factors during the calculation of safety stocks is not possible.
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Agenda
1. The challenge: Determination of optimal safety stock levels2. The solution: SCM Consulting Solution Safety Stock Simulation3. Details on Safety Stock Simulation
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The solution: SCM Consulting Solution Safety StockSimulation
Questions and answers about SAP's safety stock simulation tool:Which prerequisites must be fulfilled by the customer?� SAP R/3 Material Management and the SAP MRP monitor must be used.
Which advantages does the safety stock simulation tool offer?� Optimal calculation of safety stocks per material based on the consumption values or the
parameters from the material master for a given service level� Simulation of changing input factors on safety stock costs (e.g. changing service level, lead
time, demands)� Calculation with ERP method or extended methods of SCM APO possible
Is the safety stock simulation tool a modification?� No, it is not. It is an add-on.
Is there any customizing necessary to use the safety stock simulation tool?� No, there are no customer specific adjustments necessary.
How time-consuming is the installation?� The consulting solution will be installed within one-day and is immediately ready-to-use.
What are the costs for the safety stock simulation tool?� Please send an inquiry to Marc Hoppe or Ferenc Gulyássy.
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Goal´s of SCM Consulting Solution Safety StockSimulation
The safety stock simulation tool allows the calculation of optimal safety stocklevels for a given service level:§This normally leads to a shifting of safety stocks between materials in order to storethe right materials. That’s why a reduction of safety stock costs and an improvementof service levels can be achieved at the same time .§With the help of the parameter-simulation future trends (e.g. a higher service level,decrease in demand, reduced lead times) can be considered and evaluated.§It is easy to show which effect an increase of service level has on the safety stockvalue
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Agenda
1. The challenge: Determination of optimal safety stock levels2. The solution: SCM Consulting Solution Safety Stock Simulation3. Details on Safety Stock Simulation
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Details Safety Stock Simulation
Modes
Levels of analysis
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Details Safety Stock Simulation
Service levelsettings forsimulation
Uncertainty settings
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Details Safety Stock Simulation
Different methodsConsideration of supply uncertainty
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Details Safety Stock Simulation
RLT settings
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Details Safety Stock Simulation
Minimum safety stock Maximum safety stock
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Details Safety Stock Simulation
Safety Time Calculation
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Details on Safety Stock Simulation
Variation of several inputfactors possible
Calculation of several safety stocks andUpdate of material masterreorder points
Regression Analysis Aggregated Views
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Details on Safety Stock Simulation
Aggregate safety stocks on severalaggregation objects
Regression line
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Details on Safety Stock Simulation
Cost-optimized Service Levels as planning output, not input
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Do you need more details?
Please visit: SAP Help Portal
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Where can I get more information on SCM CS?
Go to SAP service marketplace and search for note 1493943Visit the SCM CS Overview on the SAP Help Portal
Visit our webpage: www.sap.de/inventoryoptimization
Ferenc GulyássyBusiness Processes Senior ConsultantSCM SAP ConsultingSAP Deutschland AG & Co. KGHomberger Straße 2540882 [email protected]
Or ask for more information:Marc HoppeConsulting Manager SCMSAP ConsultingSAP Deutschland AG & Co. KGTeudorfpstraße 820148 [email protected]
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