Safety stock is 12.9 if the standard deviation of demand is 10 and the desired service level is 0.90 .
What is Safety stock ?
Logisticians refer to a degree of excess stock as "safety stock" to reduce the danger of stockouts (a shortage of raw materials or packaging) brought on by erratic supply and demand. A sufficient safety stock level enables company activities to operate as planned. [1] Safety stock is kept as a precaution against stockouts when there is uncertainty regarding demand, supply, or production yield.
A safety stock is an extra quantity of a product kept in the inventory to lower the possibility that it will run out. It serves as a buffer stock in the event that sales are higher than anticipated or the supplier is unable to supply the extra units on time.
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