Calculating Safety Stock Requirements using Microsoft Dynamics AX 2012

Safety stock requirements often represent a key element in S&OP game plans for those scenarios with stocked end-items or stocked components.  Within Microsoft Dynamics AX 2012, an item's safety stock requirement is defined by the minimum quantity field, and you can calculate a proposed minimum quantity based on an item's historical usage.  These calculations also identify the potential change in inventory value of the proposed minimum quantities.  However, the use of these calculations and the minimum quantity field are often poorly understood or even unused, which can lead to ineffective S&OP game plans for stocked items.     

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About Scott Hamilton

Scott Hamilton has consulted globally with several hundred manufacturing/distribution companies on SCM and ERP issues. His publications include multiple books about SCM using Dynamics AX as well as two textbooks about SCM/ERP, and his books have been translated into Russian, Chinese and Japanese. For more than 10 years, Scott has been a frequent speaker at Microsoft and AXUG conferences around the world, and a multi-year winner of the rarely given Microsoft MVP award for Dynamics AX. His regular column “The AX Solution Architect” is published in MSDynamicsWorld.com.

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