How is DDMRP Buffer Stock Different from Safety Stock?

Executive Summary The Demand Driven Institute (DDI) claims that buffers stocks are not related to safety stock and accuses those that make the correlation as not understanding DDMRP. We evaluate if the DDI correct in this assertion. Introduction One of the core areas of DDMRP is how much it relies on setting buffer stocks. As…

The Problem with the Location Isolation of the Calculation of the Dynamic Safety Stock Formula

Executive Summary The lack of consideration for relative inventory with the safety stock formula. How inventory parameters should be calculated. I am getting to the real question of safety stock. Infinite planning (The norm) versus constrained planning. Introduction In this article, we will cover a significant limitation of how safety stock is calculated. This limitation…

Should Non Finished Goods Safety Stock be Carried?

Executive Summary Safety stock is how a stock is kept to account for variability. George Plossl discussed how safety stock ruins the credibility of MRP and whether safety stock should be applied to raw materials and components. Safety stock changes for make to stock versus assemble to order. Introduction to Safety Stock Safety stock is…

How to Use the Internet Based Reverse Dynamic Safety Stock Calculator

Executive Summary This is the reverse dynamic safety stock calculator. This puts a slight twist on dynamic safety stock. Introduction to the Reverse Safety Stock Calculator This dynamic safety stock calculator is designed to do the following: Calculate safety stock. Explain the logic behind the mathematics of the dynamic safety stock calculator. See our references…

How to Use the Brightwork Internet Based Dynamic Safety Stock Calculation

Executive Summary This article introduces the dynamic safety stock calculation and reviews the current safety stock calculation explanations. There is a general preference for talking about the standard dynamic safety stock calculation rather than diving into its math. Introduction to Calculating Safety Stock This dynamic safety stock calculation article has two purposes: To calculate safety stock….

How to Understand The Safety Stock Calculation in SAP SNP

Executive Summary Safety stock calculated can be performed in several ways in SAP SNP. We cover how safety stock methods compare in SNP versus SAP ERP and the common limitations of SAP’s safety stock. Introduction (Skip if You Watched the Video) The safety stock method is one of the essential functionalities of SNP. SNP’s safety…