Safety stock is kept as a buffer between supply and demand. This assignment requires you to identify an item of inventory which is kept by your business or alternatively research one.

1. You will need to identify the type of inventory that this item is categorized as. You will need to ascertain whether there is a safety stock level for this item. A) Provide an explanation for how safety stock is calculated and whether you believe that the safety stock level for the item is accurate. Is it just right, too little or too much?

B) Based on the cost of the item you have selected, provide a total cost for the safety stock of this item. Show you calculations and explain how you arrived at your answer.