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What is Safety Inventory Management in Supply Chains about?
Safety inventory is carried to satisfy demand that exceeds forecasts and balance availability against holding costs, with the appropriate level determined by desired availability, demand uncertainty, supply uncertainty, and inventory policies. Higher uncertainty or availability requires more safety stock, while reducing lead time variability provides the greatest benefit to minimizing safety stock requirements. The impact of service level on safety stock is that higher service levels increase required safet
- Author
- Syed Kamran Abbas
- Language
- EN