Safety stock is extra inventory a business keeps in case of emergency.
Lakisha’s firm has an economic order quantity or reorder point of 10 units, but she always keeps 15 on hand in case a big customer comes in. The extra 5 is her safety stock.
Safety stock is extra inventory a business keeps in case of emergency.
Lakisha’s firm has an economic order quantity or reorder point of 10 units, but she always keeps 15 on hand in case a big customer comes in. The extra 5 is her safety stock.
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