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Safety Stock

This documentation page provides detailed information about how safety stock calculations work across the system, helping you make informed inventory planning decisions.

Safety Stock Dashboard​

The Safety Stock Dashboard provides a comprehensive view of required inventory based on:

  1. Lead Time Calculations:

    • Each item's lead time (in days) is converted to weeks (rounded up to the nearest week)
    • Example: A lead time of 12 days converts to 3 weeks (assuming 5 working days per week)

  2. Reference Date Selection:

    • The dashboard allows you to select a specific "Reference Date" as the starting point for calculations
    • All predictions are summed from this reference date forward through the lead time period
    • Only the lead time sum is displayed on the dashboard for focused decision-making

  3. Model Comparison:

    • All available prediction models are displayed for comparison
    • For Model 3 (Chronos), predictions adjust based on your configured quantile value
    • Higher quantile values (e.g., 95%) provide more conservative safety stock recommendations

Excel Reports - Supply Planning Sheet​

The "Supply Planning" sheet in the "All Predictions" Excel report provides a more comprehensive view:

  1. Weekly Calculation Method:

    • The system organizes predictions into complete weeks (Monday-Sunday)
    • Important: When selecting a reference date, the entire week containing that date is included in calculations
    • For example, if you select Wednesday, April 3rd, the calculations include the entire week of March 31st-April 6th

  2. Multiple Timeframe Sums:

    • Lead Time Sum: Total predicted quantity during the item's lead time, starting from the selected reference date's week
    • Monthly Sum: Total predicted quantity for 4 complete weeks from the reference date
    • Total Sum: Complete future forecast from the reference date onward

  3. Model 3 Specific:

    • Supply Planning calculations exclusively use Model 3 (Chronos) with the quantile value saved in the database
    • This ensures consistency between reports and your configured confidence levels

This full-week approach ensures that no partial weeks are used in planning, which aligns better with most production and supply chain cycles. It also means that moving your reference date within the same week will produce identical results.