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Sagot :
Information do you need to know how much safety stock you should hold Level of demand variability during lead time.
Safety stock is calculated through multiplying most everyday usage (that is the most quantity of gadgets bought in an unmarried day) with the most lead time (that is the longest time it has taken the seller to supply the inventory), then subtracting the made of common everyday usage (that is the common quantity of gadgets bought in.
Safety inventory is designed to save you inventory-outs while there is variability for your call for and supply. Changes for your imply lead time and call for have an effect on your cycle inventory however now no longer your protection inventory. By lowering the variability, you lessen your protection inventory. Let us have a take a observe instances to apprehend this.
Learn more about demand here:
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