Safety (security) stock:
a) this is the stock that is kept in order to meet the uncertainty...
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Business, 25.10.2019 02:43 alecnewman2002
Safety (security) stock:
a) this is the stock that is kept in order to meet the uncertainty in demand and delivery delays in the supply period.
b) this is especially necessary when demand is uncertain. such stock is not required if demand is known precisely.
c) the optimal safety stock to be held is decided for opposite purposes: -
d) minimization of stocking costs, - minimization of stocking costs related to security stock.
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