Items listed in this exception are warehouse SKUs with Safety Stock values assigned in the Stocking tab of Inventory Maintenance. Although safety stock can have narrow use cases, the typical SKU will benefit more from using min order point instead of safety stock. 

Safety Stock adds to the SKU's order point when ROP (order point calculation) runs. For example, if an SKU's Order Point is calculated to be three and has a Safety Stock of 1, then the SKU's resultant Order Point is 4.

Min Order Point sets a floor where the order point will not fall below. For example, if you set Min Order Point to 4 then the Order Point will never fall below 4.

For example, you have a door hinge and always want four on the shelf. If you use Safety Stock in the example above, and the Order Point falls to 2 at some point, then Safety Stock will only generate an Order Point of 3. However, if you use a min Order Point of 4 instead, your order point will never be less than 4.

Issues with Safety Stock

• Is easily confused with Min Order Point and is not as effective
• Creates confusion when items also have a Min Order Point and/or Max Stock Level
• Can create backstock and overstock
• Is an obscure way to manage order quantities (few stores use it)
• Can reduce labor efficiencies with EOQ (min/max)

Steps to process this report:

1. 1. Display the listed SKU in Inventory Maintenance
   2. Blank out the Safety Stock
   3. Adjust the Min Order Point if desired 
   4. Save your changes