We were under the impression that an MRP Display of “Safety Stock” indicates the item is only needed to keep the item quantity above the safety stock level. However, we are seeing items which are negative to allocation (ie. demand for the item on existing production orders exceeds the quantity on hand and on order) but MRP shows the item as needed for safety stock. Shouldn’t this be either MRP Requirement or Production Material? See below for sample item:
The “Safety Stock” designation is confusing and has resulted in stock outs as the items weren’t ordered in time to meet the real demand for the item. Any suggestions would be appreciated. Thanks
Best answer by PaulMainard55
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