What is virtual safety stock in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: virtual safety stock

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Safety stock that is not created in the liveCache as a requirement element. It is merely displayed as an MRP element in the product view. Certain functions, such as pegging, cannot therefore be used.

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• Key Concepts: 
  Virtual safety stock is a feature of the Production Planning and Detailed Scheduling (PPS) component of SAP's Supply Chain Management (SCM) module. It is a type of inventory buffer that is used to protect against unexpected demand or supply fluctuations. It is calculated based on the forecasted demand and supply, and is not physically stored in the warehouse. 
  
  How to use it: 
  Virtual safety stock can be set up in the PPS component of SCM. The user can define the parameters for calculating the virtual safety stock, such as the forecasted demand and supply, as well as the desired level of protection against unexpected fluctuations. The system will then calculate the virtual safety stock based on these parameters. 
  
  Tips & Tricks: 
  When setting up virtual safety stock, it is important to consider the desired level of protection against unexpected fluctuations. If the level of protection is too low, there may be an increased risk of stockouts; if it is too high, there may be an increased risk of overstocking. 
  
  Related Information: 
  Virtual safety stock is similar to other types of inventory buffers, such as safety stock and reorder point. It can also be used in conjunction with other inventory management techniques, such as Just-in-Time (JIT) and Kanban.