17/10/2017 Static Vs Dynamic Safety stock

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Static Vs Dynamic Safety stock

Hello Gurus

I want to know the following

1. Whats a Dynamic Safety Stock ?

2. The basic difference between Static Vs Dynamic Safety Stock

3.In which business scenario do we use a Dynamic & in which cases Static safety stock -

https://archive.sap.com/discussions/thread/1041455 1/5
17/10/2017 Static Vs Dynamic Safety stock

(https://people.sap.com/raja.krishna)

Raja Krishna (https://people.sap.com/raja.krishna)

September 11, 2008 at 11:46 AM
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4 replies

(https://people.sap.com/vivek.maitra)
VIVEK MAITRA (https://people.sap.com/vivek.maitra)replied

September 11, 2008 at 10:44 AM

Dear Raja,

There are two types of availability checks

1) Availability Check for stock types in Inventory Management

(Static Availability Check):

This check takes only the existing stock at the time of entry
into account. This check is carried out automatically & no
setting can be made for it in the system .It covers the relevant
stock affected at the plant, storage location & special stocks
level. The stock affected is determined via the movement
type.

Ex: If you enter transfer posting with mvt 321 for 20 nos from
Quality to unrestricted the system checks whether 20 nos.are
actually available in Quality stock

2) Check of available stocks from the view point of MRP

(Dynamic availability check):

In this case in addition to stock physically available in

warehouse, here planned receipt & issues can also be taken
into account. This check enables you to prevent an already
reserved quantity from being withdrawn or reserved for
another purpose.

https://archive.sap.com/discussions/thread/1041455 2/5
17/10/2017 Static Vs Dynamic Safety stock

For Ex; Today we have a stock of 100 nos. 25 pieces are

reserved for withdrawal tomorrow & another 25 nos are
reserved for day after tomorrow which means only 50 pieces
are available today. If you try to create another reservation of
60 nos today system will give warning or error message.

Hope this will clear your concept

Vivek

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(https://people.sap.com/raja.krishna)
Raja Krishna (https://people.sap.com/raja.krishna)replied

September 11, 2008 at 11:04 AM

Hi Vivek

It seems you have misinterpreted as availability check .... am

looking for Safety stock only ....the diff bet dynamic vs static
safety stock & not dynamic avl check....

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(https://people.sap.com/csaba.szommer)

Csaba Szommer (https://people.sap.com/csaba.szommer)replied September 11, 2008 at 10:52 AM

Hi,

1. The safety stock level changes based on the requirements

2. Static: stock level is always the same. Dynamic: stock level may change as per the
requirements

3. If your requirements are fluctuating, they show seasonality (e.g.) maybe there's no point
in using always the same stock level. E.g. if you sell icecream, in winter your safety stock
level should be lower than in summer.

http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d2d0c44af11d182b40000e829fbfe/fr
ameset.htm

Regards,

https://archive.sap.com/discussions/thread/1041455 3/5
17/10/2017 Static Vs Dynamic Safety stock

Csaba

Edited by: Csaba Szommer on Sep 11, 2008 10:45 AM

Edited by: Csaba Szommer on Sep 11, 2008 10:51 AM

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(https://people.sap.com/priyanka.paltanwale)

Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale)replied

September 11, 2008 at 11:46 AM

Dynamic safety stock --> The safety stock which is dynamic
in nature. ie. changeable is called as dynamic safety
stock....this stock may change from time to time...and may be
frequently...

Use: Such type of safety stock is req. when you there are
frequent changes in the production products...that means if
the material production lot is small in size...

Static safety stock --> The safety stock which is

constant/same/levelled for the period of time....it also changes
but very rarely...

Use: It is seen mostly in the case of the material production

with big lots ie. if the production of the material goes on for
more or big time..then the safety stock will remain static....

Hope it helps...

regards

Priyanka.P

AWARD IF HELPFULL

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