Question: Regarding safety stock, which statement is not correct? Safety stock can be calculated by a supply plan - based on how many days of anticipated
Regarding safety stock, which statement is not correct?
Safety stock can be calculated by a supply plan based on how many days of anticipated need you want to have on hand.
Instead of having the plan calculate safety stock an item can be assigned a fixed safety stock quantity for the duration of the plan, or a safety stock quantity that varies over the duration of the plan.
Whether it's calculated or userdefined, safety stock is always considered during a supply plan run.
Safety stock can be calculated by the supply plan by anticipating future needs and applying service level percentages to determine timevarying safety stock levels.
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