Why does CTM create an excess of supply when I use the safety stock method ?
The standard safety stock method uses a second run to fulfill the requirements for the safety stock. CTM checks the inventory profile and as soon as there is a need it creates a virtual demand for the second run. With this method CTM creates demands at a certain point of time to maintain safety stock level irrespective of the orders created further down the timeline. Consequently you can get an excess of supply, especially when lotsize settings are being considered. For example you can face a situation with no stock at the beginning of the planning period and then several big forecasts at the end. In this case CTM creates a demand for the safety stock without taking into account the following forecasts (which have been supplied in the first run). In order to mitigate the creation of excess of supply you can use the control parameter SSTOCK_MODE : SSTOCK_MODE Do not use in SCM 5.0 or higher. Instead use in CTM profile -> Supplies with ‘Build Up Safety Stock’ Do not plan Demands indicato
