Navigate to: Settings > Configuration > Policy
Definition
Definition
The maximum number of safety stock days that an item will receive.
This setting ensures that no item is assigned excessive safety stock, even if its forecast or supply risks are very high.
Use case
Use case
When configuring this parameter, it is important to assess whether your business tends to:
Over-forecast or under-forecast.
Experience suppliers delivering late or early.
Be more negatively affected by excess stock or by stock-outs.
💡 Tip: The default value for Maximum Safety Stock is 999 days. It is strongly recommended to review and adjust this value according to your business needs.
Explanation
Explanation
Safety stock acts as a buffer to protect against stock-outs.
Too little safety stock increases the risk of stock-outs when there are unexpected supply or demand disruptions, negatively affecting fill rate.
Too much safety stock ties up unnecessary working capital and increases holding costs.
Setting appropriate limits ensures that the app calculates balanced safety stock levels — enough to protect service levels without locking up excessive capital.
FAQs
FAQs
Question: I set my Maximum Safety Stock parameter to 50 days. I then create a policy override for a group of items, setting their safety stock to 60 days. What will their safety stock value be?
Answer: 60 days. The policy override will replace any global constraints except for the “No safety stock for items with less than” constraint.
➜ For more on this topic, read: How To: Troubleshoot Safety Stock Policy Overrides
Forget about these 👇 😞 😐 😃 Have your say here!