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Safety Stock Archives - World's Largest Community of Supply Chain Professionals | Global Leader in Supply Chain News | Top rated Supply Chain Forum in USA https://supplychainboard.com/tag/safety-stock/ Global Community of SCM Professionals Tue, 26 Jan 2021 08:23:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.7 https://supplychainboard.com/wp-content/uploads/2021/01/cropped-SCB-Favicon-1-32x32.png Safety Stock Archives - World's Largest Community of Supply Chain Professionals | Global Leader in Supply Chain News | Top rated Supply Chain Forum in USA https://supplychainboard.com/tag/safety-stock/ 32 32 How to Calculate Safety Stock and avoid high cost of Inventory https://supplychainboard.com/how-to-calculate-safety-stock-and-avoid-high-cost-of-inventory/ Wed, 26 Feb 2020 08:13:00 +0000 https://supplychainboard.com/?p=433 In order to avoid the high costs of stock shortages and stock-outs, the following video explains how to calculate safety stock. The video shows inventory refilling times, daily consumption, safety stock thresholds and levels, and your company’s own time on the market in terms of delivery. A graph is presented that shows clearly what the […]

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In order to avoid the high costs of stock shortages and stock-outs, the following video explains how to calculate safety stock. The video shows inventory refilling times, daily consumption, safety stock thresholds and levels, and your company’s own time on the market in terms of delivery.

A graph is presented that shows clearly what the reorder point should be and what should be the amount of safety stock.

A working example is given when a company monitors a variety of inventory refilling times, its own daily consumption levels, the amount of safety stock that it has to protect during those consumption periods, and eventually, your company’s distribution times for finished goods to your consumer base.

The post How to Calculate Safety Stock and avoid high cost of Inventory appeared first on World's Largest Community of Supply Chain Professionals | Global Leader in Supply Chain News | Top rated Supply Chain Forum in USA.

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