Question: Why is it important to cut demand and lead time variation? Variation impacts safety stock and safety stock is twice as expensive as cycle stock.

Why is it important to cut demand and lead time variation?
Variation impacts safety stock and safety stock is twice as expensive as cycle stock.
It is important to know what demand will be to plan for labor in KT's
Lower variation enables suppliers to gain most favored supplier status.
Demand and lead time variation make it difficult to predict the correct EOQ.
ROP will vary greatly with varying lead time variation.
Why is it important to cut demand and lead time variation?

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