In its simplistic term, safety stock is the amount of inventory a business keeps to avoid running out of products in case of unexpected demand or delays in supply.
There are different formulas for calculating safety stock (explain in detail in this blog 👉 [ Ссылка ]).
However, all formulas have some common variables are average and maximum daily usage or sales, average and maximum lead time, service level factor, and lead time demand.
The 4 most common variables explain in this 60 seconds video!
#sales #safety #stock #inventorymanagement #muddassirism #scmdojo #drmuddassirahmed #supplychain #supplychainmangement
4 Variables in Safety Stock Calculation
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inventory managementinventory management systeminventory controlinventory turnover ratiosafety stock in inventory managementsafety stock levelsafety stock inventory control systemsafety stock and service levelsafety stock problemssafety stock supply chainsafety stock planningsafety stock modelscmdojosupply chainsupply chain managementsupply and demand trading strategysupply and demandsupply and demand zonesmuddassirisimdr Muddassir Ahmed
