Safety stock


When you use the Auto-replenishment function, you can set the Safety stock. If you set the Safety stock, then the orders will be auto-replenished. So, that the inventory level does not fall below the safety stock.

 

Requirements and example settings

Below are the explanations of example settings for each requirement of Safety stock.

(1) Basic Safety stock setting

Asprova SCP

The level of the Safety stock is set in the [Inventory MIN] property of the Order table.
For inventory planned order, set the [Order type] property as [Inventory (planned)], fill the [Site] property, [Due date] and [Order quantity] property are need to be filled.
Inventory planned order is assigned and associated with other orders, but it is not calculated in inventory graph.

"Inventory MIN", "Inventory MIN2", "Inventory MIN3" and "Target inventory MIN" are unavailable in Asprova SCP module.

Asprova APS

Set the level of Safety stock in the "Inventory MIN" property of the Item table. With this setting, from the "Scheduling basis time" onwards orders will be auto-replenished to ensure that, as much as possible, this inventory level is maintained. The orders auto-replenished for the Safety stock will be assigned forward. (For more details about assignment direction, please refer here.)

 

(2) Allowing the inventory to temporarily fall below the Safety stock setting

Set the level of Safety stock in the [Target inventory MIN] property of the Item table. With this setting, orders will be auto-replenished to ensure that this inventory level is secured by the "Display end time". (For more details about "Target inventory MIN", please refer here.

 

(3) Period specific Safety stock setting (Available from Ver.6)

The level of the Safety stock can be set across four periods by using the [Inventory MIN], [Inventory MIN2], [Inventory MIN3] and [Target inventory MIN] properties of the Item table. The start date of [Inventory MIN] is "Scheduling basis time", while the start dates of [Inventory MIN2], [Inventory MIN3] and [Target inventory MIN] are set respectively in [Inventory MIN2 date], [Inventory MIN3 date] and [Target inventory MIN date expression].

Followed examples are the usages of [Inventory MIN], [Inventory MIN2], [Inventory MIN3] and [Target inventory MIN] properties in the Asprova APS. In case of Asprova SCP, please refer to the safety stock of inventory planned order in order table.(no link provided.)

Example 1: Setting to reduce the Safety stock gradually

Example 2: Setting to attach a time fence to the Safety stock

Example 3: Setting to increase and decrease the Safety stock

Scheduling parameter

In the case where you set the Safety stock, in order to reschedule once, it is necessary to do pegging at least two times.
The first pegging takes place during the "Explode orders" command. At this time each order is usually not assigned. So, using the order's due date, it is assigned by FIFO. For example, let's assume that a certain item has an order as shown below.

Order code

Order type

Item code

Order Qty

Due date

X

Inventory

C

10

2009/06/01

Y

Manufacturing order

A

10

2009/06/10

 

Item C is the raw material for Item A and the Inventory MIN for C has been set to 10.
The pegging of this kind, including the Safety stock is pegged as shown below.

Because the output side is insufficient, the auto-replenish orders have been generated. After this, the assignment command will be assigned using this pegging. The condition straight after this is shown below.

Even on the Inventory graph the inventory will not drop below the Safety stock. However, in the case where there is the presumption that you will use old inventory, there will be problem with the pegging.

In order to input inventory C into the manufacturing order, it is necessary to set the Assign command to "Assign/peg orders" or execute the "Peg" command. Doing this on the second time, you will execute the pegging two times and it will result in the following.

In case where you want to use custom commands instead assign/peg orders command (e.g. do not want to execute Assign MRP or Assign manufacturing orders commands), remember to place a Peg command after the custom commands. For details on the command structure please refer to Assign orders command for each order type and peg command.

 

Reference

When the Auto-replenish flag is set to "Yes (one-to-one production)" or "Yes (inventory + one-to-one production)", then even if the Safety stock is set, it will be ignored.

 

Details of period specific Safety stock

When the "period specific Safety stock" is set, when the orders are exploded, temporary inventory orders will be generated. These inventory orders will be assigned to the start of the period, until the next pegging.
This inventory is the Safety stock and the orders pegged to this Safety stock will be assigned either backward or forward depending on Scheduling parameter settings.

(With the Default scheduling parameter, if you switch and assign the "Assign/peg orders" with "Assign manufacturing orders", then as shown below, you can confirm the state of the actual assignments.)

If you leave this inventory order assigned as it is, the inventory will be completely consumed, so that on the Inventory graph a period will occur where the inventory will drop below the Safety stock.
In addition, if the "period specific Safety stock" has been set to gradually reduce the Safety stock, then the Asprova will automatically delete the auto-replenishment orders that it considers to be unnecessary. Because it is impossible to decide whether auto-replenishment orders are necessary or not until the assignment is done, the decision is made during the second pegging and then the unnecessary ones are deleted.

However, in the cases below the auto-replenishment orders are not deleted.

When the Auto-replenish flag is set to "Yes (one-to-one production)" or "Yes (inventory + one-to-one production) or "Yes (supply-demand adjustment one-to-one production).

When the Lot sizing period is used and the [Lot sizing rounding quantity pegging type] property of the Item table is set to "Not pegged".

 


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