Selva,
The next section is related to Q1 and Q2:
I would suggest to think on basis of multiple PIR's placed. Kindly take a test case on strategy '10' with multiple PIR's distributed over periods, draw a curve joining the PIR points and check the results. 'Dampened' = reduced and 'Stimulated' = enhanced or increased.
In simple words, if you produce less than the PIR, you will experience a rise in the net demand and if you produce more, the excess warehouse stock will reduce the net demand.
Q3: Is this the best practice to modify the PIR qty in MD62 from 8 to 10 to handle this situation?
As you have suggested, PIR qty should not be modified. But i feel that "Safety StocK" can be used to cater these requirements. Am i right?
The 'safety stock' is generally used for 'safety', in situations like:
(a) you suddenly face a production breakdown.
(b) the produced stock got destroyed suddenly in warehouse for some reason.
(c) the storage system was not properly set up and you have faced a sudden quality failure just before delivery.
It is up to the planner the situation s/he wants to incorporate in this list.
But again, if you need that the production should react against customer demands, you cannot cater that requirement through a pure make-to-stock strategy like '10' in standard.
Best Regards,
Rajen