Safety Stock (SS): The minimum level of inventory to be stocked, generally to be used when there is a change in demand or supply over a short period of time to increase service level
Re-Order Point (ROP): The inventory level at which more goods should be ordered, general idea is to set this no less than (lead time * demand in lead time)
Dan, We had a scenario in the past and out investigation led us to the following conclusion:
>‘Safety Stock’ is for MRP Planned Items. >‘Reorder Point’ is for Master Scheduled Items.
This meant they can't be used in conjunction with each other. If that has changed,, would be a good thing but I have not found that to be the case as of yet..
The minimum level of inventory to be stocked, generally to be used when there is a change in demand or supply over a short period of time to increase service level
Re-Order Point (ROP):
The inventory level at which more goods should be ordered, general idea is to set this no less than (lead time * demand in lead time)
Attached a document which might help
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>‘Safety Stock’ is for MRP Planned Items.
>‘Reorder Point’ is for Master Scheduled Items.
This meant they can't be used in conjunction with each other. If that has changed,, would be a good thing but I have not found that to be the case as of yet..
Thanks
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