Policy - Safety stock - No safety stock for items with less than X sales per year

The number of sales per year below which an item is considered a slow-moving item.

Slow-moving items will never receive any safety stock.

When configuring this parameter, it is important to determine whether the business tends to:

If excess stock is a concern, set this parameter to a higher value than if stock-outs are the main concern.

➜ Refer to the Forecast Risk and Offset and Supply Risk and Offset configuration parameters.

Forecast risk, forecast offset, supply risk, and supply offset all influence how safety stock is calculated.

Suppose you have a slow-moving item that sells only one or two units per year. In this situation, carrying safety stock may not be appropriate, because it is impossible to predict when the next sale will occur. A fixed minimum stock level is a more suitable approach.

This parameter allows you to specify the number of units an item must sell per year to be eligible for safety stock.

Question: Can we not reclassify slow movers as non-stocked if we are not concerned about stock-outs?
​Answer: Yes. However, before doing so, use this parameter to stop the accumulation of safety stock for slow movers. This will make it easier to clear the remaining stock on hand once the items are reclassified as non-stocked.