OPTIMIZING SAFETY STOCK

Optimizing Safety Stock



Optimizing Safety Stock

Optimizing security supply grades by assessing the magical balance of negligible inventory while gathering variable customer demand is sometimes described as the Holy Grail of inventory administration (ok, forecasting is probably the factual holy grail but I considered this sounded good). Many businesses gaze at their own demand fluctuations and assume that there is not sufficient consistency to forecast future variability. They then drop back on the test and mistake best estimate weeks provide procedure or the over simplified 1/2 lead time usage procedure to organise their safety stock. Unfortunately, these procedures prove to ...