If you are looking for safety stock assignment solutions then you have landed on the appropriate page. Safety stock is the additional quantity that is required by organizations to avoid risk and hindrances that occur in production processes. Students pursuing inventory management and Management courses have to make weekly assignments on safety stock. In such cases, they look for assistance and guidance which can be attained through safety stock assignment help from Sample Assignment.
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Safety stock is the extra level of stock that is maintained by an organization to mitigate the risk of stock out. Stockout is a situation when there is a shortfall in raw material availability required for the production of output. Organizations can proceed according to their plan with the availability of adequate safety stock. It is useful in case of excess demand and is utilized by manufacturing yield to attain maximum gains. Safety stock acts as a buffer stock at the time increase in the number of sales. As suppliers are not always ready to provide raw material on short durations, the organization can rely on safety stock to avoid bottlenecks. It is also a strategic tool in case of a new product launch by the company before its demand can be forecast by the researchers.
Safety stock is used by organizations under the make-to-stock manufacturing strategy. This strategy is employed when the lead time of producing goods is too long, and it takes time to satisfy customers demand through the right quality, cost, quantity, and waiting time.
Safety stock is mainly used to absorb the variability in products demanded by consumers. As you know the production planning is based on forecasts which can vary from the actual demand created by its consumers. That is why safety stock is maintained by organizations to safely provide and improve the service provided to customers at all levels.
Stockouts can be prevented with the help of safety stock such as an unlikely upward trend that occurs in customer demand. Stock-outs occur due to inappropriate planning or inappropriate supply generated by suppliers.
Some organizations avoid safety stock due to the cost endured by. Organizations believe in lowering the service level to reduce the need for safety stock. Enterprise resource planning systems are used by organizations to maintain and check the availability of safety stock. It also assists in sales forecast generation and creation of operation plans.
Several methods are adopted by organizations to reduce safety stock such as efficient use of technology, accurate forecasting, and reliable suppliers. But at times these techniques would lead to stockouts that would tamper with supply generated by production processes.
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