Safety Stock Overview
The Safety Stock Management System allows you to reserve specific inventory items and quantities for specific customers. For example, your company may commit to a specific customer that they will always have 5 units of a product in stock that the customer can call off on demand. The Safety Stock System is used to document the stocking commitments that you have made to your customers, and it ensures that the system does not automatically allow the on hand quantities for each item to fall below the safety stock level you have defined for each item.
The records that are created and maintained in the SAFETY file (File 214) define the items and quantities that are reserved in each warehouse for each customer. The total of the safety stock quantity for each warehouse/item combination is also stored in the Inventory Master record for each item. If safety stock has been defined for a specific item, the system will not automatically allocate below the defined safety stock level for the item. When the on hand quantity of an item is not sufficient to fill the customer requirements from stock , and the order is a warehouse shipment (i.e. not a vendor shipment, or special order), the system backorders the sales order line for the item. If the customer for the order has safety stock available for the item, the Manual Allocation program can be used to allocate the safety stock to any backordered sales orders for the customer.
More:
Defining the Safety Stock for an Item
Safety Stock - Processing Overview