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

SAP Term: safety stock

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: A buffer added to inventory to counteract stockouts when demand and supply are uncertain. The amount is typically determined based on a specified service level and the associated variability in demand and supply.

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• Key Concepts: 
  Safety stock is a type of inventory that is kept in reserve to protect against unexpected demand or supply disruptions. It is a buffer stock that is maintained to ensure that the desired service level is met. In SAP's MA-SMOPS SmartOps, safety stock is used to ensure that the desired service level is met even when there are unexpected changes in demand or supply. 
  
  How to use it: 
  In MA-SMOPS SmartOps, safety stock can be used to protect against unexpected changes in demand or supply. The safety stock level can be set based on the desired service level and the expected variability in demand and supply. The safety stock level can also be adjusted based on the current inventory levels and the expected future demand and supply. 
  
  Tips & Tricks: 
  When setting the safety stock level, it is important to consider both the desired service level and the expected variability in demand and supply. It is also important to consider the current inventory levels and the expected future demand and supply when adjusting the safety stock level. 
  
  Related Information: 
  For more information on safety stock and how to use it in MA-SMOPS SmartOps, please refer to SAP's documentation on inventory management.