Hi guys,
I just realized that it is because the target days' supply is too high.
The higher the target days' supply the lower safety stock is. When target days' supply is too high, safety stock will become 0.
But I do not understand why.
There is info about this in guide: During the reorder point method BS the system uses the target days’ supply from the location product master data to calculate the purchase order quantity.
Could someone explain this?
Thanks
Michael