Value Chain Planning - EBS (MOSC)

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Inventory Optimization and Supplier Variability in Leadtime

I have configured IO to suggest dynamic safety stock.

I could refer to IO user guide and certain Metalink Notes 579019.1,444298.1.

This notes helped me understand how the Service level,Supplier Leadtimes and Demand Variation impacts and results into the Safety stock.

I could calculate the SS using the suggested formula and verified the Numbers suggested in Plan.

Now I am looking to validate the suggested SS level as it gets impact because of Variability in Supplier Leadtime.

Example - Say Supplier LT =10 days but the Supplier historically delayed  by 10 days in say 30 of the 100 supply situations.We can set this us as Supplier Variability and based on the input System modified the SS level.

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