Safety times and service categories

The calculated buffer time thus far is a product exclusively of the aforementioned individual uncertainties. The individual service category desired by the managing clerk can be realized using the service category factor SCF that is used to correct the calculated buffer time, e.g. 

Service category 1 Service category 2 Service category 3 

So that you can also lower - or raise - the buffer times and thereby the safety stocks by the same percentage rates for all reference numbers, there is another political factor FPO that is set to 1.0 in the beginning in the system, meaning that it initially has no effect whatsoever. If you change this factor, for example, to 0.9, your planning will immediately include a safety stock that is 10% lower. The safety stocks will decline by this 10%. This is e.g. one way to effectively and definitely lower safety stocks that appear excessive. 

The buffer time per reference number for each service category should be le-calculated periodically  

By periodically recalculating the buffer times which you can directly influence depending on the level of service desired and the maximum capital tie-up tolerated, you turn the capital tie-up of all safety stocks into a variable determinable by experts. You are able to realize this part of the capital tie-up in inventory according to instructions issued by management. The managing clerks are relieved of the virtually impossible and tedious job of maintaining safety stocks or even buffer times. 

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