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BEC Safety Stock
SCILLA654 - 03/15/2019, 11:56 pm
REG

How did safety stock get calculated? I'm super lost.

Thank you so much.

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RAIN - 03/19/2019, 3:17 pm

Safety stock is 7 days of inventory (27 max lead time – 20 average lead time). The average inventory is 250 units per day, so 250 × 7 = 1,750 units of safety stock.

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SCILLA654 - 03/21/2019, 4:08 pm

Thank you for your explanation RAIN. It helped me understand how to calculate the safety stock and know that it's 7 days of inventory.

Have a great day!