Patent ID: 8315923

Claim:
A software product comprising instructions, stored on computer-readable media, wherein the instructions, when executed by a computer, perform steps to determine safety stock levels, comprising: instructions for introducing top-level product forecast demand, top-level product forecast demand variation, and top-level product target service level to a MRP system; wherein the top-level product forecast demand, the top-level product forecast demand irregular variation, and the top-level product target service level relate to a top-level product including a plurality of component items respectively having a source and a lead time; instructions for accumulating and aggregating a forecast demand, a forecast demand variation, and a target service level for MRP production line sources of the top-level product; instructions for determining a smoothed-variation value for the top-level product; instructions for accumulating top-level product forecast demand, top-level product smoothed variation, and top-level product target service level for a first supply-chain level of the component items and all subsequent intermediate supply-chain levels; instructions for accumulating product forecast demand, smoothed variation, and target service level for each component item source; instructions for determining aggregate demand, aggregate variation, and aggregate service level for each component item; and instructions for calculating safety stock using the aggregate demand, aggregate variation, aggregate service level, and lead time for the component items; wherein the smoothed-variation value is one of: a) the lesser of a calculated value and a maximum horizon for commit to configuration; or b) the greater of a calculated value and a result of a days-of-requirements analysis; the smoothed-variation value being the lesser of a calculated value and a maximum horizon for commit to configuration for assemble-to-order, make-to-order, and engineer-to-order situations; and the smoothed-variation value being the greater of a calculated value and a result of a days-of-requirements analysis for make-to-stock situations.