How Safety Stock Bucket Days Is Used In Calculating Safety Stock

Safety stock bucket days is the time frame in work days on which gross
requirements are averaged to compute an average daily demand for an
item. Then the Safety stock percentage is applied to this average daily
demand.
Assume the following data
Day 1, Demand = 100
Day 5, Demand = 300
Day 10, Demand = 200
Day 12, Demand = 400
Safety bucket days = 5
Safety Stock planning percent = 200%
When computing safety stock for day 1 system adds demand for day 1 to
day 5 = 100 + 300 and divides it by 5
So average daily demand is = 400/5 = 80
and safety stock is computed as 80 * 200% = 160
When computing safety stock for day 5 it leads to 300/5 = 60 daily
demand => safety stock = 120
When computing safety stock for day 10 it leads to (200+400)/5 = 120
daily demand => safety stock = 240

Another Example

Step 1 - calculate safety stock based on percentage

MRP Planned Safety Stock creates a time varying safety stock profile for the
Item/Org that is a function of the demand. The calculation used is
Safety Stock (Day X) = Sum of all demands for that Item for "Bucket Days" number
of working days from Day X * Percent / (100*Bucket Days)
In the above case, if
Bucket Days = 5
Percent = 200
Working days - Monday through Friday

(Org Item General Planning Tab)

Step 1 Safety Stock

Date

1-M

2-Tu

3-W

4-Th

5-F

Demands

15

35

SS Step1

36

42

44

46

6-Sa

7-Su

8-M

9-Tu

10-W

30

20

20

10

32

20

12

Note: It is important to note that the demands included above are both the
dependent and independent demands. The dates considered for the independent
demands when making the safety stock calculation are the demand due dates. The
dates considered for the dependent demands while making the calculation are the
demand due dates as calculated by Unconstrained Planning. If you are running a
constrained plan, the dependent demands may be pulled in or pushed out to
different dates than the above. However the safety stock calculations are NOT
REDONE based on the constrained dates.
The safety stock level is calculated each day even when there is no demand (new
11i10 behavior). The safety stock level is an end of day level.
In the weekly buckets, the demands are prorated over the working days in the week,
since all demands are bucketed to the last day of the week. For example, if there are
500 units of demand on the last day of the week, say Friday, and there are 5 working
days then the safety stock calculation will use a daily demand of 100 units.
If either Safety Stock Bucket Days or Safety Stock Percent are null, then the default
in both cases is 0 and safety stock is 0.