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SCM Consulting SolutionsSafety Stock Simulation 2018Christian Luehrmann, Business Processes Senior Consultant (SAP Consulting)August 21st, 2018

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Agenda

1. The challenge: Determination of optimal safety stock levels2. The solution: SCM Consulting Solution Safety Stock Simulation3. Details on Safety Stock Simulation


The challenge: Determination of optimal safety stock levels

During the process of determining optimal safety stock levels, MRP planners oftenencounter the following problems:

§The desired service level is globally set by the sales department. The direct influence onstock levels and inventory costs can not be determined and is, therefore, not considered.

§No tool allows a calculation of the optimal safety stock levels based on the actualconsumption values for the desired service level.

§For this reason, safety stock are maintained manually. A regular maintenance of the fixedsafety stocks is too time-consuming. Changes in the parameters like decreasing/increasingdemands, shorter lead time are not considered.

§ Calculation of safety stock and reorder points without starting standard SAP materialforecast is possible with the safety stock simulation.

§In the SAP standard an automatic calculation of safety stocks is only possible if the materialmaster forecast is executed.

§A simulation of changing input factors during the calculation of safety stocks is not possible.


Agenda



The solution: SCM Consulting Solution Safety StockSimulation

Questions and answers about SAP's safety stock simulation tool:Which prerequisites must be fulfilled by the customer?� SAP R/3 Material Management and the SAP MRP monitor must be used.

Which advantages does the safety stock simulation tool offer?� Optimal calculation of safety stocks per material based on the consumption values or the

parameters from the material master for a given service level� Simulation of changing input factors on safety stock costs (e.g. changing service level, lead

time, demands)� Calculation with ERP method or extended methods of SCM APO possible

Is the safety stock simulation tool a modification?� No, it is not. It is an add-on.

Is there any customizing necessary to use the safety stock simulation tool?� No, there are no customer specific adjustments necessary.

How time-consuming is the installation?� The consulting solution will be installed within one-day and is immediately ready-to-use.

What are the costs for the safety stock simulation tool?� Please send an inquiry to Marc Hoppe or Ferenc Gulyássy.


Goal´s of SCM Consulting Solution Safety StockSimulation

The safety stock simulation tool allows the calculation of optimal safety stocklevels for a given service level:§This normally leads to a shifting of safety stocks between materials in order to storethe right materials. That’s why a reduction of safety stock costs and an improvementof service levels can be achieved at the same time .§With the help of the parameter-simulation future trends (e.g. a higher service level,decrease in demand, reduced lead times) can be considered and evaluated.§It is easy to show which effect an increase of service level has on the safety stockvalue


Agenda



Details Safety Stock Simulation

Modes

Levels of analysis



Service levelsettings forsimulation

Uncertainty settings



Different methodsConsideration of supply uncertainty



RLT settings



Minimum safety stock Maximum safety stock



Safety Time Calculation


Details on Safety Stock Simulation

Variation of several inputfactors possible

Calculation of several safety stocks andUpdate of material masterreorder points

Regression Analysis Aggregated Views



Aggregate safety stocks on severalaggregation objects

Regression line



Cost-optimized Service Levels as planning output, not input


Do you need more details?

Please visit: SAP Help Portal


Where can I get more information on SCM CS?

Go to SAP service marketplace and search for note 1493943Visit the SCM CS Overview on the SAP Help Portal

Visit our webpage: www.sap.de/inventoryoptimization

Ferenc GulyássyBusiness Processes Senior ConsultantSCM SAP ConsultingSAP Deutschland AG & Co. KGHomberger Straße 2540882 [email protected]

Or ask for more information:Marc HoppeConsulting Manager SCMSAP ConsultingSAP Deutschland AG & Co. KGTeudorfpstraße 820148 [email protected]

http://www.sap.de/inventoryoptimization

http://www.sap.de/inventoryoptimization

mailto:[email protected]

mailto:[email protected]


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