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Safety inventory in the supply chain play a very important role for responsiveness in the competitive strategy. Explain the role of safety inventory and

Safety inventory in the supply chain play a very important role for responsiveness in the competitive strategy. Explain the role of safety inventory and the trade-offs involve in balancing responsiveness and efficiency. Both Dell and Amazon aggregate inventory at one location. Explain by considering transportation and inventory cost if Dell is more effective than Amazon or Amazon is more effective. Aggregation of safety inventory at one location and using responsive transportation can be more cost effective and improve the surplus for company that sell high value and fast-moving items online. Explain your answer by considering both transportation and inventory cost. List and explain which two modes of transportation are best suited for large, low value shipments.

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