Navigate to: Settings > Configuration > Supplier
Definition
Definition
Specifies the default offset (in days) applied when the supply risk for an item cannot be calculated because fewer than three valid delivery records are available.
This value affects safety stock levels. Increasing the offset increases safety stock, while specifying a negative value decreases it.
Use case
Use case
When using these parameters, it is important to assess whether suppliers tend to deliver early or late, under- or over-supply, and whether excess stock or stockouts would be more detrimental to the business.
Typically, a default risk of 20% is suitable. However:
If suppliers frequently deliver late or short, increase the default risk percentage to raise safety stock.
If suppliers generally perform reliably, reduce it to around 10% to hold less safety stock.
The default offset days should usually remain at 0, but the same logic for adjusting the risk percentage applies when modifying this value.
FAQs
FAQs
Question: When would the default risk and default offset be required? Why would the risk or offset not be determined?
Answer: These defaults are applied when an item at a location is new or has fewer than three purchase receipts from its primary supplier.
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