What is safety stock in SAP LE-JIT-S2P - Supply to Production?

SAP Term: safety stock

• Component: LE-JIT-S2P

• Component Name: Supply to Production

• Description: The quantity of stock that should be available in the warehouse to fulfil unexpected high demand, or the quantity that can be used in production, in case there are delays.

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• Key Concepts: 
  Safety stock is an inventory management technique used to ensure that a company has enough stock on hand to meet customer demand. It is a buffer stock that is kept in reserve to protect against unexpected fluctuations in demand or supply. In the context of SAP LE-JIT-S2P Supply to Production, safety stock is used to ensure that the necessary components are available when needed for production. 
  
  How to use it: 
  In SAP LE-JIT-S2P Supply to Production, safety stock can be set up by defining a minimum and maximum inventory level for each component. The system will then automatically adjust the inventory levels based on the current demand and supply situation. The safety stock can also be adjusted manually if needed.
  
  Tips & Tricks: 
  It is important to monitor the safety stock levels regularly and adjust them as needed. This will help ensure that there is always enough stock on hand to meet customer demand without overstocking or running out of components.
  
  Related Information: 
  Safety stock is an important part of inventory management and is closely related to other concepts such as reorder points, lead times, and order quantities. Understanding these concepts and how they interact with each other will help ensure that the right amount of safety stock is maintained at all times.