Safety Stock and Service Levels: a New Approach

Publisher Marketing: Text at the top of the cover: A thoroughly researched explanation of how to leverage safety stock in systems for supply planning. Text in the wave in the center of the cover: This book explains many of the great misunderstandings that surround safety stock, including the aspect of safety stock that is missed on many practitioners. Safety stock is one of the most discussed inventory management parameters in supply chain management. However, safety stock is set very inefficiently at most companies. This observation comes from reviewing the safety stock settings at many companies on the part of the author. What is little known or at least little discussed is that the methods of setting safety stock within the vast majority of supply planning systems -- even supposedly advanced methods such as dynamic safety stock, miss out on many of the important attributes of safety stock setting. This book provides the full explanation of why, and then what to do about it. Safety stock is inherently linked to service levels. However, while many companies make bold proclamations surrounding service level attainment, they generally do not have good ways of quantitatively determining service levels. By reading this book you will: Understand the concepts and formula used for safety stock and service level setting. Common ways of setting safety stock. Service levels and inventory optimization applications. The best actual ways of setting both service levels and safety stock."