Security distance

The safety stock, also called reserve stock or minimum stock, is a term from materials management. It is a size that is specified in addition to the stock and describes the minimum quantity of a material that must always be in stock. Fluctuating demand or irregularities within the supply chain are intended to be intercepted. It is not used up in a scheduled replacement.

Abandonment of the safety stock

The purpose of the safety stock is to cover the following uncertainties:
The demand uncertainty if the identified demand does not match the actual demand, the inventory uncertainty, the book inventory and the inventory do not match, and the delivery uncertainty if the target delivery time does not match the actual delivery time.

Covering these uncertainties serves to maintain production in the event of irregularities such as strikes or delivery bottlenecks at the supplier.

Formula for calculation

There are several methods of calculating the safety stock. A very common one here as an example:

Safety stock = Ø consumption / period * procurement duration

Goal of the safety stock

Durch den Sicherheitsbestand steigen zwar die Kapitalbindungs- und Lagerhaltungskosten, allerdings erhält man durch ihn zusätzliche Sicherheit. Würde es in der Produktion auf Grund eines fehlenden Material zum Stillstand kommen, fallen sogenannte Shortage costs an. Fehlmengenkosten sind im Vergleich zu den Kosten die durch den Sicherheitsbestand anfallen allerdings weitaus tragischer.

The aim of the reserve stock is to minimize the sum of the storage costs and at the same time the shortage costs.

Summary

Der Sicherheitsbestand trägt dazu bei den business eines Unternehmens gegen Liefer-, Bedarfs- und Bestandsunsicherheiten abzusichern. Er ist abhängig von der Wiederbeschaffungszeit und dem durchschnittlichen Tagesverbrauch.

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