Summary
The Global Safety Stock Settings controls some application-level safety stock settings. It can be accessed by going to Admin --> System Configuration --> Global Safety Stock Settings.
Column Description
- Error Source - Determines what StockIQ uses as its source of error for SS calculations. This should be left at Statistical Forecast.
- Minimum Percentage of Lead Time Safety Stock Cap - For long lead time items, over the "Safety Stock Cap maximum Threshold" value (see below), StockIQ will cap Safety Stock at this percentage of demand-over-lead time, usually 80%, so that your SS is capped to no more than 80% of your demand over a long lead time. This prevents safety stocks from being calculated that are unusually large.
- Maximum Percentage of Lead Time SS Cap - For short lead time items, at or below the Safety Stock Cap Minimum Threshold (see below), this specifies the maximum multiple of demand-over-lead time that can be safety stock. Up to 500% of average demand over lead time, for highly variable, short-lead time items, is allowed if necessary.
- Safety Stock Cap Minimum Threshold - Specifies the lead time, in days, at or under which the maximum percentage of LT cap applies
- Safety Stock Cap Maximum Threshold - Specifies the lead time, in days, at or over which the minimum percentage of LT cap applies.
NOTE: For items in between the two cap ranges, a blended cap value is used. e.g. if an item's lead time is halfway between the min and max threshold, the cap percentage applied for this item will be halfway between the min and max cap percentages.
- Panic Point Fraction - This determines what percentage of safety stock is used to determine your panic point. 50% of SS is the most common value.
- Finished Good Usage Source - Controls if independent usage, dependent usage, or both are used calculating demand level when calculating safety stock for an item at the top of the structure, e.g. a finished good, or a spoke item.
- Assembly Usage Source - Controls if independent usage, dependent usage, or both are used calculating demand level when calculating safety stock for an item that is in the middle of the structure
- Component Usage Source - Controls if independent usage, dependent usage, or both are used calculating demand level when calculating safety stock for an item that is at the bottom of the structure, e.g. a raw material, or a hub warehouse item.
NOTE: For these usage source calculations, they are not affected by the "Include Dependent Demand in Daily Usage" from the Global Daily Usage settings screen. This allows you to decouple safety stock usage policy from item usage, (such as days-of-supply) calculations.
- Inventory Exchange Curve Report Update Frequency - Sets how often the inventory exchange curve data values are updated. This is a very computationally expensive process, so typically doing this analysis once per week, or less, is sufficient.
- Stop Cumulative Lead Time Calculation for Stocked Components - instructs StockIQ to halt the Cumulative Lead Time calculation when we reach a level of the BoM/Dependency chain where the item has a stocking order policy, indicating we'd expect stock at that level. Allows a lower cumulative LT, and thus a lower safety stock calculation if you are stocking to Cumulative Lead Time.