Hi,

Been trying to figure this one out but would appreciate some thoughts.

Our Demand Planning process involves taking consumer demand at the store level applying days of supply calculation, looking at on hand inventory and adding lead times to come up with the store shipments forecast.

The shipments forecast is then rolled up and is used in conjunction with sales and financial forecasts to drive the Sales and Operations process where we reach a concensus of what the final forecast projections for the remainder of the year will be.

The point I'm debating is whether safety stock should be applied on top of the S&OP driven final forecast? The shipment forecast already includes a hedging element based on days of supply, and as such I feel like there may be some double counting involved.

Any thoughts on what the appropriate process is, would be appreciated.

Thanks

Nziv

Been trying to figure this one out but would appreciate some thoughts.

Our Demand Planning process involves taking consumer demand at the store level applying days of supply calculation, looking at on hand inventory and adding lead times to come up with the store shipments forecast.

The shipments forecast is then rolled up and is used in conjunction with sales and financial forecasts to drive the Sales and Operations process where we reach a concensus of what the final forecast projections for the remainder of the year will be.

The point I'm debating is whether safety stock should be applied on top of the S&OP driven final forecast? The shipment forecast already includes a hedging element based on days of supply, and as such I feel like there may be some double counting involved.

Any thoughts on what the appropriate process is, would be appreciated.

Thanks

Nziv

## Comment