Safety stock, also referred to as safety allowance, is the additional stock you carry in inventory to protect against a stock out. If forms a pad to take care of reasonable variations in usage or lead time from the averages anticipated. Safety allowance is an amount that you define for each product in IC Warehouse/Item F/M (ICF920). It can be entered as days, a percentage, or a quantity. FACTS will convert a days or percentage value to a quantity and use that value to determine the product’s order point.
Safety Stock for Approved Replenishment Path (ARP) Vendor Parameters
Safety Stock for ARP Vendor Adjusters
Safety Stock for ARP Warehouse Parameters
Safety Stock for ARP Warehouse Adjusters
An item’s replenishment order point will be adjusted by the safety stock level when the Approved Replenishment Path is set to Vendor. This level can be configured to utilize Days or Percentage of Average Daily Usage (ADU). The order point will then be adjusted by the value supplied and the appropriate calculation method.
If supplied, the Rank for an item will indicate the Safety Stock value to apply for the Order Point calculation. When an item’s Rank is recalculated, the corresponding Safety Stock and Order Point will be recalculated to reflect the new calculated results. If the values are not defined for an item’s Rank, the next hierarchy level’s Rank value is used. If a higher level Rank is not available, the corresponding value at the hierarchy level will be utilized for Safety Stock.
| Safety Stock Type | Indicates either Days or Percentage of Safety Stock |
| Days or Percentage | The number of days or percentage safety stock |
| Rank A | Value for A ranked items, dependent on safety stock type |
| Rank B | Value for B ranked items, dependent on safety stock type |
| Rank C | Value for C ranked items, dependent on safety stock type |
| Rank D | Value for D ranked items, dependent on safety stock type |
| Rank E | Value for E ranked items, dependent on safety stock type |
| Expiration Date | Expiration date for override |
| Memo | Optional memo for override |
The settings for this section can be defined at the company, warehouse, or whse/item levels only.
For an item that has a Safety Stock type of Percentage, minimum and maximum calculated days can be supplied at each Rank. This will allow a buyer to control the calculated Order Point’s Safety Stock and ensure an acceptable range for Safety Stock days.
| Minimum Days | Rank A minimum Safety Stock days for ARP Vendor |
| Maximum Days | Rank A maximum Safety Stock days for ARP Vendor |
| Minimum Days | Rank B minimum Safety Stock days for ARP Vendor |
| Maximum Days | Rank B maximum Safety Stock days for ARP Vendor |
| Minimum Days | Rank C minimum Safety Stock days for ARP Vendor |
| Maximum Days | Rank C maximum Safety Stock days for ARP Vendor |
| Minimum Days | Rank D minimum Safety Stock days for ARP Vendor |
| Maximum Days | Rank D maximum Safety Stock days for ARP Vendor |
| Minimum Days | Rank E minimum Safety Stock days for ARP Vendor |
| Maximum Days | Rank E maximum Safety Stock days for ARP Vendor |
| Expiration Date | Safety Stock by ARP Vendor minimum and maximum days for Rank expiration date |
| Memo | Optional memo for Safety Stock by ARP Vendor minimum and maximum days for Rank adjuster |
The settings for this section can be defined at the company, warehouse, or whse/item levels only.
An item’s replenishment order point will be adjusted by the safety stock level when the Approved Replenishment Path is set to Warehouse. This level can be configured to utilize Days or Percentage of Average Daily Usage (ADU). The order point will then be adjusted by the value supplied and the appropriate calculation method.
If supplied, the Rank for an item will indicate the Safety Stock value to apply for the Order Point calculation. When an item’s Rank is recalculated, the corresponding Safety Stock and Order Point will be recalculated to reflect the new calculated results. If the values are not defined for an item’s Rank, the next hierarchy level’s Rank value is used. If a higher level Rank is not available, the corresponding value at the hierarchy level will be utilized for Safety Stock.
| Safety Stock Type | Indicates either Days or Percentage of Safety Stock |
| Days or Percentage | The number of days or percentage safety stock |
| Rank A | Value for A ranked items, dependent on safety stock type |
| Rank B | Value for B ranked items, dependent on safety stock type |
| Rank C | Value for C ranked items, dependent on safety stock type |
| Rank D | Value for D ranked items, dependent on safety stock type |
| Rank E | Value for E ranked items, dependent on safety stock type |
| Expiration Date | Expiration date for override |
| Memo | Optional memo for override |
The settings for this section can be defined at the company, warehouse, or whse/item levels only.
For an item that has a Safety Stock type of Percentage, minimum and maximum calculated days can be supplied at each Rank. This will allow a buyer to control the calculated Order Point’s Safety Stock and ensure an acceptable range for Safety Stock days.
| Minimum Days | Rank A minimum Safety Stock days for ARP Warehouse |
| Maximum Days | Rank A maximum Safety Stock days for ARP Warehouse |
| Minimum Days | Rank B minimum Safety Stock days for ARP Warehouse |
| Maximum Days | Rank B maximum Safety Stock days for ARP Warehouse |
| Minimum Days | Rank C minimum Safety Stock days for ARP Warehouse |
| Maximum Days | Rank C maximum Safety Stock days for ARP Warehouse |
| Minimum Days | Rank D minimum Safety Stock days for ARP Warehouse |
| Maximum Days | Rank D maximum Safety Stock days for ARP Warehouse |
| Minimum Days | Rank E minimum Safety Stock days for ARP Warehouse |
| Maximum Days | Rank E maximum Safety Stock days for ARP Warehouse |
| Expiration Date | Safety Stock by ARP Warehouse minimum and maximum days for Rank expiration date |
| Memo | Optional memo for Safety Stock by ARP Warehouse minimum and maximum days for Rank adjuster |
The settings for this section can be defined at the company, warehouse, or whse/item levels only.
See Also
Replenishment Parameter Maintenance Procedures
Replenishment Variables Calculations
Inventory Control Replenishment Parameters