how safety stock bucket days is used in calculating safety stock

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How Safety Stock Bucket Days Is Used In Calculating Safety Stock Safety stock bucket days is the time frame in work days on which gross requirements are averaged to compute an average daily demand for an item. Then the Safety stock percentage is applied to this average daily demand. Assume the following data Day 1, Demand = 100 Day 5, Demand = 300 Day 10, Demand = 200 Day 12, Demand = 400 Safety bucket days = 5 Safety Stock planning percent = 200% When computing safety stock for day 1 system adds demand for day 1 to day 5 = 100 + 300 and divides it by 5 So average daily demand is = 400/5 = 80 and safety stock is computed as 80 * 200% = 160 When computing safety stock for day 5 it leads to 300/5 = 60 daily demand => safety stock = 120 When computing safety stock for day 10 it leads to (200+400)/5 = 120 daily demand => safety stock = 240 Another Example Step 1 - calculate safety stock based on percentage MRP Planned Safety Stock creates a time varying safety stock profile for the Item/Org that is a function of the demand. The calculation used is Safety Stock (Day X) = Sum of all demands for that Item for "Bucket Days" number of working days from Day X * Percent / (100*Bucket Days)

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Page 1: How Safety Stock Bucket Days is Used in Calculating Safety Stock

How Safety Stock Bucket Days Is Used In Calculating Safety Stock 

     Safety stock bucket days is the time frame in work days on which gross requirements are averaged to compute an average daily demand for an item. Then the Safety stock percentage is applied to this average daily demand.

Assume the following dataDay 1, Demand = 100Day 5, Demand = 300Day 10, Demand = 200Day 12, Demand = 400

Safety bucket days = 5Safety Stock planning percent = 200%

When computing safety stock for day 1 system adds demand for day 1 to day 5 = 100 + 300 and divides it by 5So average daily demand is = 400/5 = 80and safety stock is computed as 80 * 200% = 160

When computing safety stock for day 5 it leads to 300/5 = 60 daily demand => safety stock = 120

When computing safety stock for day 10 it leads to (200+400)/5 = 120 daily demand => safety stock = 240

Another Example

Step 1 - calculate safety stock based on percentage

MRP Planned Safety Stock creates a time varying safety stock profile for the Item/Org that is a function of the demand. The calculation used is

Safety Stock (Day X) = Sum of all demands for that Item for "Bucket Days" number of working days from Day X * Percent / (100*Bucket Days)

In the above case, if

Bucket Days = 5Percent = 200Working days - Monday through Friday

Page 2: How Safety Stock Bucket Days is Used in Calculating Safety Stock

(Org Item – General Planning Tab)

Step 1 – Safety Stock

Date 1-M 2-Tu 3-W 4-Th 5-F 6-Sa 7-Su 8-M 9-Tu 10-W

Demands 5 15 5 35 30 20 20 10

SS – Step1 36 42 44 46 32 20 12 4

Note: It is important to note that the demands included above are both the dependent and independent demands. The dates considered for the independent demands when making the safety stock calculation are the demand due dates. The dates considered for the dependent demands while making the calculation are the demand due dates as calculated by Unconstrained Planning. If you are running a constrained plan, the dependent demands may be pulled in or pushed out to different dates than the above. However the safety stock calculations are NOT REDONE based on the constrained dates.

The safety stock level is calculated each day even when there is no demand (new 11i10 behavior). The safety stock level is an end of day level.

In the weekly buckets, the demands are prorated over the working days in the week, since all demands are bucketed to the last day of the week. For example, if there are 500 units of demand on the last day of the week, say Friday, and there are 5 working days then the safety stock calculation will use a daily demand of 100 units.

If either Safety Stock Bucket Days or Safety Stock Percent are null, then the default in both cases is 0 and safety stock is 0.