Safety Stock: A Trojan Horse?
- Topics:
- Inventory Management
- Tags:
- Finance,
- Investment,
- R. D. Garwood,
- Stock,
- Trojan Horse,
- Warehouse
- Source:
- R. D. Garwood
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Overview: "Safety stock or safety time may be necessary and beneficial if strategically planned for the right reasons. It is more often misunderstood, deceptive and disastrous! When the safety stock parameter (pieces, days or level for kanban signal) is increased in a planning system, additional material or product does not automatically pop up in the warehouse, nor is there a padlocked box in the warehouse with this ""minimum"" inventory. The article parts up that it takes more capacity in the supply chain to make more and, thus, increase buffer inventory or safety stock. Therefore it just advise to be beware of increasing safety stock. It just may be a Trojan horse! "
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Format: HTML | Date: Jan 2002 | Pages: 1
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