I very often get the question “what is the difference between safe stock and reorder point”, and I usually use this illustration.
The planning will try to replenish the item on the starting date of the Calculate Regenerative Plan, therefore the starting date must always be in the future to make the plan realistic. How long into the future? that is up to the individual company and the planning horizon they have set. Setting up both a safety stock quantity and a reorder point with a reorder quantity, will trigger the following actions:
Warning, Setting a safety stock will increase the inventory value because it will create a stock of unavailable items.
This is one of the chapters in my upgraded book: Manufacturing with Business Central.
The book will be available later this summer at https://dynamicsbookstore.com.
Good article, could I be cheeky and ask for an example please?