Showing posts with label Safety Stock. Show all posts
Showing posts with label Safety Stock. Show all posts

Friday, October 14, 2016

Reorder Point Procedure or PD with Safety Stock?

Have you ever wondered why planners tend to rather use a safety stock with MRP Type 'PD' to buffer variability, as opposed to a reorder procedure? Oftentimes PD is used across the board and no one wants to bother with another MRP type. However, with SAPs standard configuration the safety stock doesn't serve as a planning buffer and the additional inventory ends up being dead stock.