Demystify Safety Stock Calculation Methods in PP/DS

  • by Wolfgang Eddigehausen
  • December 1, 2003
Subtle differences in the way SAP APO SNP and the Production Planning and Detailed Scheduling (PP/DS) applications calculate safety stock are often a source of confusion. Gain an understanding of these differences and see how you use the SAP safety stock methods in PP/DS.

In most cases, the safety stock calculation methods in the SAP APO SNP and Production Planning and Detailed Scheduling (PP/DS) applications operate in the same way. However, subtle differences exist in the way the planned safety stock is displayed and in the calculation of the safety stock values. This is a source of confusion when calculating safety stock in PP/DS that I would like to clear up.

Safety stocks in SNP are always displayed as a quantity. This applies directly when you use quantity-based safety stock methods (SB, MB, AS, AT, BS, and BT). For demand-based safety stock methods (SZ and MZ), a macro translates the required safety days' supply into quantities before viewing them in the SNP Interactive Planning transaction. The same applies to the quantity-and-demand-based safety stock methods (SM and MM). Earlier articles in this series on safety stock planning describe these safety stock methods in detail.1

The display of safety stock values within PP/DS — for example, in the Product View transaction (menu path Production Planning>Interactive Production Planning> Product View, or transaction code RRP3) — is not always this easy to understand. The quantity-based safety stock method results are displayed in the transaction as requirement quantities, just like any other order, while the demand-based safety stock methods do not create any entry at all. The quantity-and-demand-based safety stock methods create a requirement entry reflecting only the quantity-based safety stock portion of the total safety stock requirement. The available safety stock methods for PP/DS are also driven by the settings in the Lot Size tab on the Product Master screen.

Wolfgang Eddigehausen

Wolfgang Eddigehausen is a highly experienced expert in the areas of business process design, re-engineering, and user adaption, as well as process realization in complex SAP-centric environments. He has experience in solution and enterprise architecture and project management (PRINCE2 certified) domains defining enterprise capabilities with a focus on delivering effective and efficient solutions to organizations. Wolfgang's industry knowledge includes public sector, utilities, mining, distribution, general manufacturing, process and steel industries, and consumer goods.

In most roles his task is not only to architect a solution but also to evaluate and define strategic options with a focus on end-to-end solutions rather than systems. This also includes strong emphasis on the user acceptance through an innovative user experience and mobility enablement.

His career includes successful participation and management of projects in Australia, Europe, India, Japan, Singapore, South Africa, Taiwan, and the US. These projects required interaction with all levels of an organization, from the shop floor or office through to the CxO level. Throughout his career, Wolfgang has put emphasis on a holistic approach bringing together people, processes, information, and systems in project management, architecture, and implementation roles.

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