Safety stock is the amount of inventory needed to provide a cushion for the up and down in supply and demand of meeting the customer’s needs and wants. In addition, the product is available when the reordered product arrives later than expected, or the lead-time would cause the demand to be longer than expected. The negative of safety stock is a tying up the business’s capital.
Rating
|
Average rating:
5
Number of Ratings : 1
|
|
|
|
View Topic History
|