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What is Safety Stock Optimization in Supply Chains about?

This document summarizes an optimization model for strategically placing safety stock in supply chains. The model assumes supply chains can be modeled as networks with periodic review base-stock policies at each stage. An algorithm is developed to optimize safety stock placement for supply chains modeled as spanning trees. The model aims to minimize inventory costs while providing a high level of service. It was successfully applied by product teams at Eastman Kodak to reduce inventories and cycle times.

Author

foad8888

Language

EN