Setting Up Safety Stock

Define Safety Stock

1. On the Item/Warehouse form, enter desired safety stock levels for your items.
2. On the Items form, enter values for Time Fence Rule.
1. For all Items where Source = Manufactured:

   • If safety stock > 0, set the Time Fence Rule equal to "Lead Time." See topic below to determine if you need to use "Accumulated Lead Time."  Do NOT use "Specific Value."

   • If safety stock = 0, set the Time Fence Rule equal to "No Time Fence."

2. For all Items where Source = Purchased, set the Time Fence Rule equal to "Lead Time."
3. On the Planning Parameters form:
   1. Clear the Suspend Time Fence (Second Pull) check box.
   2. Set Preservation Level Multiplier equal to "1."

Using Accumulated Lead Time for manufactured Items

Normally, if a manufactured item has safety stock, you will use set its Time Fence Rule to "Lead Time."  However, you should consider using "Accumulated Lead Time" when:

• You cannot assume purchased items in the item’s BOM will usually be in stock.
• You are getting safety stock replenishment quantities that are too early and too large.

Related Topics

How Safety Stock is Replenished