In this field, you can enter a quantity of stock that you want to have in inventory to protect against fluctuations in demand and supply during the replenishment lead time for the item.
The Safety Stock Quantity field plays the following role in the planning calculations when the projected available balance<safety stock quantity<reorder point:
The program will create an order proposal that is backward scheduled from the due date of the requirement that caused the deficit in the projected available balance.
The order proposal quantity will, at
the minimum, bring the projected available balance up to the level
that is specified in the Safety Stock Quantity field.
The final order proposal quantity may be further adjusted due to
additional requirements within the reorder
cycle, the effects of the reordering
policy, and the quantity modifier fields: Minimum Order Quantity, Maximum Order Quantity, and Order Multiple.
If you leave the field blank, the program sets the safety stock quantity for the item to zero. If you enter a negative number in the field, the program will disregard it.
Although a safety stock quantity is set aside to compensate for fluctuations, the planning system may consume from it to cover a demand that could otherwise not be fulfilled on its due date. In that case, the planning system will ensure that the safety stock is quickly replaced by suggesting an exception supply order to replenish the safety stock quantity on the date it is consumed. This planning line will display an exception warning explaining to the planner that the safety stock has been partly or fully consumed and must be replenished.