Min On Hand/Max On Hand/Safety Stock calculations

Purchasing has asked me to check around for definitions of how they should calculate min on hand, max on hand and safety stock. I have been through documentation which notes how Epicor will use numbers once entered, however their question is looking to understand how Epicor would calculate them.

We will eventually run the mass update process, but we keep on coming back to the same question they want to understand how Epicor wants them to calculate these different numbers.

There are several ways one could define these and I am looking to get an understanding how others are calculating them. would you be willing to share with me how your company interpret the way to arrive to a min/max/ss number to use.

we have a number of seasonal parts as well as steady runner parts and we are also interested in seeing how others deal with seasonality when determining how you calculate those compared to the steady runners.

Hi Kristine,

We continue to use this method that I posted about last March and it continues to work well for us:

We don’t use Max on hand to manage our purchasing of inventory in our plant that does the purchasing to re-order level.

However, we use Max OH on our plants that get the parts transferred from us to maintain their levels and keep us from transferring one at a times all of the time.

Our calculations for SS to cover deviations in demand and lead time come from this APICs stuff:

I look forward to seeing what others are doing as well!

Nancy