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  2. MAPICS-L
  3. July 2006

Re: Safety Stock Calculation

We calculate safety stock this way:

  Actual usage is computed as the total of "IP", "IU", "IS",     
  "SA", and "IX" transaction quantities over the past 12 months
  and do not include any open manufacturing allocations or open pick
list   
  requirements.                                                  
                                                                 
  A daily usage figure is calculated as actual usage from above divided
by
  260.                                                           

  Safety stock = daily usage from above times the number of days lead
  time

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