What is average safety stock in SAP MA-SMOPS - SmartOps?

SAP Term: average safety stock

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: Defines an average value for the buffer added to inventory for each customer-facing stocking point averaged over good periods.

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• Key Concepts: 
  Average safety stock is a term used in SAP's SmartOps (MA-SMOPS) component. It is a measure of the amount of inventory that should be kept on hand to ensure that customer demand can be met without running out of stock. It is calculated by taking the average of the minimum and maximum safety stock levels. 
  
  How to use it: 
  Average safety stock can be used to determine the optimal amount of inventory to keep on hand. This can help reduce costs associated with overstocking or understocking, as well as improve customer service levels. In SAP's SmartOps component, average safety stock can be set up in the Inventory Optimization module. 
  
  Tips & Tricks: 
  When setting up average safety stock in SAP's SmartOps component, it is important to consider factors such as customer demand, lead times, and supplier reliability. Additionally, it is important to review and adjust the average safety stock levels regularly to ensure they remain accurate and up-to-date. 
  
  Related Information: 
  For more information on average safety stock and how to use it in SAP's SmartOps component, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_SMART_OPS/1H2020/en-US