Safety Stock Journal

Finance and Operations/AX User Forum
1

Hi,

I have posted a new minimum quantity for an Item, 100.

So it was automatically updated on Item coverage (that is requirement item coverage group).

I run a scenario, i received 150 qty of the same Item and sold 150 (150 -150 = 0). So now in my stock on hand is 0.

My question is If 100 is min safety stock for that item then why system allowed to sale 150. Then what is the use of maintaing safety stock in system [*-)]

Please clear the safety stock concept in AX. I am attching the screen shot.

Attached screen shots:

6278.Fig 1 Inventory transactions.docx (137 KB)Fig 1 Inventory transactions: First Purchased 150, then sold 150. After posting sale now onhand is zero. But minimum defined for safety stock is 100

Item Coverage : for Site 1, warehouse 11, minimum is 100.
Thanks.

2

The minimum is the stock holding to cover demand during the lead time of the item. The idea is you have 100 in stock, you have a 10 day lead time, you sell 10 a day, as the last one is taken from teh shelf the purchase order for replenishment refills to all requirements. There is no relationship between what you “can” sell and the minimum stock holding. If you had run your planning after loading the sales order for 150 you would have a planned purchase order for 100 (plus order modifiers etc)

Run planning and look at the net requirements.