SFG has Safety Stock maintained in Material Master
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True
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False
Reveal answer
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B
Correct answer
Explanation
SFG (Semi-Finished Goods) does not have safety stock maintained in Material Master. Safety stock is typically maintained only for FG (Finished Goods) and critical raw materials. SFG inventory is planned through MRP and produced as needed based on FG requirements.
AI explanation
Semi-finished goods (SFG) generally don't carry a safety stock value in the material master because they are intermediate products consumed quickly in the next production step rather than held as buffer stock for demand variability. Safety stock is typically reserved for finished goods or critical raw materials where supply/demand uncertainty needs a buffer.