Method Of Determining Safety Stock Levels

A method of determining safety stock levels, comprising:

• determining aggregate top-level product demands;
• determining aggregate top-level product demand variations;
• determining aggregate top-level product target service levels;
• determining respective smoothing time frames for a plurality of mixed-product lines;
• and
• incorporating the aggregate top-level product demands, the aggregate top-level product demand variations, the aggregate top-level product target service levels, and the smoothing time frames into a material requirements planning system to determine safety stock levels.

A method of determining safety stock levels, comprising:

• determining aggregate top-level product demands;
• determining aggregate top-level product demand variations;
• determining aggregate top-level product target service levels;
• and
• using the aggregate top-level product demands, the aggregate top-level product demand variations, and the aggregate top-level product target service levels to determine safety stock levels.

A software product comprising instructions, stored on computer-readable media, wherein the instructions, when executed by a computer, perform steps to determine safety stock levels, comprising:

• instructions for introducing top-level product forecast demand, top-level product forecast demand variation, and top-level product target service level to a MRP system;
• wherein the top-level product forecast demand, the top-level product forecast demand irregular variation, and the top-level product target service level relate to a top-level product including a plurality of component items respectively having a source and a lead time;
• instructions for accumulating and aggregating a forecast demand, a forecast demand variation, and a target service level for MRP production line sources of the top-level product;
• instructions for determining a smoothed-variation value for the top-level product;
• instructions for accumulating top-level product forecast demand, top-level product smoothed variation, and top-level product target service level for a first supply-chain level of the component items and all subsequent intermediate supply-chain levels;
• instructions for accumulating product forecast demand, smoothed variation, and target service level for each component item source;
• instructions for determining aggregate demand, aggregate variation, and aggregate service level for each component item;
• and
• instructions for calculating safety stock using the aggregate demand, aggregate variation, aggregate service level, and lead time for the component items.

A software product comprising instructions, stored on computer-readable media, wherein the instructions, when executed by a computer, perform steps to determine safety stock levels, comprising:

• instructions for determining aggregate top-level product demands;
• instructions for determining top-level product demand variations;
• instructions for determining top-level product target service levels;
• instructions for determining respective smoothing time frames for a plurality of mixed-product lines;
• and
• instructions for incorporating the aggregate top-level product demands, the top-level product demand variations, the top-level product target service levels, and the smoothing time frames into a material requirements planning system to determine safety stock levels.

A system for determining safety stock levels, the system comprising:

• at least one processor;
• and
• computer memory coupled to the processor and having recorded within it machine readable instructions for:
• introducing top-level product forecast demand, top-level product forecast demand variation, and top-level product target service level to a MRP system;
• wherein the top-level product includes a plurality of component items respectively having a source and a lead time;
• accumulating and aggregating a forecast demand, a forecast demand variation, and a target service level for MRP production line sources of the top-level product;
• determining a smoothed-variation value for the top-level product;
• accumulating top-level product forecast demand, top-level product smoothed variation, and top-level product target service level for a first supply-chain level of the component items and all subsequent intermediate supply-chain levels;
• accumulating product forecast demand, smoothed variation, and target service level for each component item source;
• determining aggregate demand, aggregate variation, and aggregate service level for each component item;
• and
• calculating safety stock using the aggregate demand, aggregate variation, aggregate service level, and lead time for the component items.

A system for determining safety stock levels, comprising:

• at least one processor;
• and
• computer memory coupled to the processor and having recorded within it machine readable instructions for:
• determining aggregate top-level product demands;
• determining top-level product demand variations;
• determining top-level product target service levels;
• determining respective smoothing time frames for a plurality of mixed-product lines;
• and
• incorporating the aggregate top-level product demands, the top-level product demand variations, the top-level product target service levels, and the smoothing time frames into a material requirements planning system to determine safety stock levels.