Calculating Safety Stock Requirements using Microsoft Dynamics AX 2012

Safety stock requirements often represent a key element in S&OP game plans for those scenarios with stocked end-items or stocked components.  Within Microsoft Dynamics AX 2012, an item's safety stock requirement is defined by the minimum quantity field, and you can calculate a proposed minimum quantity based on an item's historical usage.  These calculations also identify the potential change in inventory value of the proposed minimum quantities.  However, the use of these calculations and the minimum quantity field are often poorly understood or even unused, which can lead to ineffective S&OP game plans for stocked items.     

This article reviews the two major variations about the significance of the minimum quantity field as the basis for safety...

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