Hello all,
Need some advice on average daily requirements calculation and other aspects involved in the dynamice safety stock calculation as well.
Total requirement available in the system as now is : 150.
Average requirement calculation = Total requirement/Time period (Number of days)
As here the number of period is equivalent to = 3 Months. Upon listing out the holidays and non working days i get a value of 67 days.
average requirement calculation = 150/66 = 2.272.
But this seems to be slightly different from the value calculated here. Moreover the minimum range of coverage is '0' but the system has calculated a value here for the minimum stock . How is it possible ?
Is there any other formulae involved in the calculation of minimum stock value other than: average requirement * minimum range of coverage.
Please do help me out.
Regards,
Rahul