The SAP®-ERP-System provides, like any other system with MRP capabilities, methods of planning with safety stock. In this blog post, I will show you four different ways of calculating safety stock in SAP.
Safety Stock is a level of extra stock held of an item to mitigate the risk of stockouts. An adequate safety stock buffers forecast uncertainties as well as production variances. However, as this stock symbolises not used capital as well, it is a constant task for planners to optimise the safety stock level.