What's the right safety stock level for your products?

Powered by AI and the LinkedIn community

Safety stock is the extra inventory you keep on hand to prevent stockouts and meet customer demand. But how much safety stock do you need for your products? Too little and you risk losing sales and damaging your reputation. Too much and you waste money and space. In this article, you'll learn how to calculate the right safety stock level for your products based on four factors: demand variability, lead time variability, service level, and reorder point.

Rate this article

We created this article with the help of AI. What do you think of it?
Report this article

More relevant reading

  翻译: