Question

Impact of replenishment policies on safety inventory

Answer 1

$\huge\bold\red{HOLA!!}$

The role of Safety Inventory in a Supply Chain. Safety inventory: Inventory carried for the purpose of satisfying demand that exceeds the amount forecasted in a given period. ... Safety inventory is the average inventory remaining when the replenishment lot arrives.

Answer 2

Impact of replenishment policies:

• Safety inventory is kept out to satisfy the demand that surpass the forecast amount for a given time. As such, it tends to adversely affect the cost of the supply chain but has a positive impact on the responsiveness of the supply chain.
• Safety stock is a word utilised by logisticians to define a level of additional stock that is monitored to mitigate the risk of stockouts caused by supply and demand uncertainties.
• Adequate levels of security stock allow business operations to execute as planned.

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