Dynamic Safety stock calculation

1. Dynamic safety stock calculation
Prasath E
PP/QM Consultant

2. Dynamic safety stock calculation
Dynamic safety stock can be used to determine the safety stock level
The dynamic safety stock is calculated by the formula
Dynamic safety stock = average daily requirement * range of coverage
The range of coverage profile consists of the parameters which are maintained to calculate the
dynamic safety stock. The parameters maintained are based on the number of days for which the material
availability is required. Here the number of days is taken in the range of coverage for which the material
must be available. Subsequently based on this coverage profile system calculates requirements in MRP
evaluations & creates the order proposals
Prasath E
PP QM Consultant

3. Actual based on Coverage profile(After MRP
Run-MD02/MD03)
Date MRP Element MRP Element data Quantity
required
Available Qty
12.07.2018 Stock 0 0
02.07.2018 IndReq VSF 40- 40-
01.08.2018 IndReq VSF 100- 140-
03.09.2018 IndReq VSF 120- 260-
01.10.2018 IndReq VSF 60- 320-
02.11.2018 IndReq VSF 80- 400-
Demand (MD61)
Period indicator-M
Number of periods-3
Type of per.length-3
No. of Days per Period-20
Range of coverage period 1stand 2nd 3
and 5 days
1.=(40+100+120)/3/20)
=4.333*3+40
=53
2.=(100+120+60)/3/20
=4.667*5+100=124
=124-13
=111
3.=(120+60+80/)3/20
=4.333*5+120
=141.665-24
=118
4.=(60+80/)3/20
=2.333*5+60
=71.6667-22
=50
5.=80/3/20
=1.333*5+80
=86.667-12
=75
Date MRP
Element
MRP Element data Quantity
required
Availabel Qty
12.07.2018 Stock 0 0
12.07.2018 PldOrd 0000000176/STCK 53 53
12.07.2018 IndReq VSF 40- 13
01.08.2018 PldOrd 0000000177/STCK 111 124
01.08.2018 IndReq VSF 100- 24
03.09.2018 PldOrd 0000000178/STCK 118 142
03.09.2018 IndReq VSF 120- 22
01.10.2018 PldOrd 0000000179/STCK 50 72
01.10.2018 IndReq VSF 60- 12
02.11.2018 PldOrd 0000000180/STCK 75 87
02.11.2018 IndReq VSF 80- 7