The most common starting point is based on covering a period of demand (for example, safety stock equals 3 weeks of demand). From there, it moves to internal debates and implementations of historical demand versus forecasted demand. The next version typically involves calculating safety stock based on a service level and an underlying data distribution with normal being the most common distribution. Some companies extend this to different types of service levels, with the two common ones being the cycle service level and the fill rate service level. Some professionals object to the use of the normal distribution and use other distributions. All these approaches have their pros and cons.
In this webinar, we will shed some light on the pros and cons of these methods. Attendees will walk away more informed about how to approach the question of setting safety stock in their business.
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About the presenter: Sujit Singh
As COO of Arkieva, Sujit manages the day-to-day operations at Arkieva such as software implementations and customer relationships. He is a recognized subject matter expert in forecasting, S&OP, and inventory optimization. Sujit received a Bachelor of Technology degree in Civil Engineering from the Indian Institute of Technology, Kanpur, and an M.S. in Transportation Engineering from the University of Massachusetts. Throughout the day don’t be surprised if you find him practicing his cricket technique before a meeting.