Safety Stock Explained
Safety stock is an important and interesting concept in inventory management. However, not every procurement professionals can explain this concept clearly. Some mistake safety stock level with reorder level. Even CIPS Study guide L4M7 does not provide any formula to calculate or at least estimate the quantity of safety stock. Fortunately, the resources on Internet are plenty and free. We have done some research and in this post, we will explain the use of safety stock, formulas to calculate the…