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Activity:
Question posted: 04 15 2009 13:37:58 +0000,
2 answers, 962 views, last activity
07 06 2010 20:18:08 +0000
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Safety inventory is Basically to protect Organization in Ordering time period ( Order Placed and Delivery due senario), from uncertain demands to execute orders / services required. Always based on last records / trends and current market senario. These inventory can be maintained properly in consulation with production and marketing team with their inputs of respective data.
Safety inventory mainly protects against inventory uncertainty by ensuring there is enough product available to maintain desired service levels most of the time. So many factors contribute to inventory uncertainty, but three main elements give rise to the differences between planned inventory and actual inventory levels, the factors are like demand deviations, supply deviations, and inventory accuracy. Traditionally, the analysis of safety inventory levels has focused primarily on demand and demand uncertainty, while supply uncertainty and inventory accuracy aren't typically addressed in the analysis of safety inventory.
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