Safety Stock Service Level & Mean Absolute Deviation (MA
Dear SAP fans,
we are procuring some indirect materials by forcasting based on the past consumption history. But in order to calculate the safety stock, we have to maintain the service level in the material master MRP-2 view. How can I advice my users to set the service level for a particular material or based on what criteria?
Also, we are interested to know how the system calculates the Mean Absolute Deviation. Appreciate your feedback.
Ronald.
Hi Ronald,
it is available in SAP online documentation under Forecasting (LO-PR), Forecast Formulas->Evaluating Forecast Accuracy.
Bye
Ralf