What is Safety Stock ?
“A quantity of stock planned to be in inventory to protect against fluctuation in demand or supply”
The formula of Supply Chain Excellence is the following:
The Safety Stock is calculated by a formula, then adjusted (divided) using a matrix based in Variability/Usage.
1) Calculation of Safety Stock with the following 3 steps according to the formula opposite.
2) Adjust (divide) previous SS results by a number depending on its Usage & Variability:
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