What is safety stock planning in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: safety stock planning

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: A function that enables you to achieve a certain service level by creating safety stock for all intermediate and finished products at the corresponding locations across the entire supply chain. In Supply Network Planning there are two types of safety stock planning: standard safety stock planning, and extended safety stock planning.

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• Key Concepts: 
  Safety stock planning is a component of SAP Supply Network Planning (SNP) that helps companies plan for unexpected changes in demand or supply. It allows companies to set a minimum stock level that will ensure they have enough inventory to meet customer demand even if there are unexpected changes in the supply chain. 
  
  How to use it: 
  Safety stock planning can be used to set a minimum stock level for each item in the supply chain. This minimum stock level is based on the company's desired service level and the expected variability in demand and supply. The safety stock level can be adjusted as needed to ensure that the company has enough inventory to meet customer demand. 
  
  Tips & Tricks: 
  It is important to monitor safety stock levels regularly and adjust them as needed. Companies should also consider using other components of SNP, such as demand planning and inventory optimization, to help manage their safety stock levels. 
  
  Related Information: 
  For more information on safety stock planning, please refer to the SAP Help Portal or contact your local SAP representative.