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Insert Formulas to the Safety Contract

Insert Formulas to the Safety Contract

Aug 6th, 2022

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How to Insert Formulas to the Safety Contract

5 out of 5

63 votes

okay so what is the best safety stock formula i got really confused the first time i was looking for for this so many mathematics and different methods but yes we do need safety to face all this uncertainty in this world regarding the demand the lead time of the suppliers the delays the pandemic the inflation and in this video im gonna try to keep it very simple with example in excel im going to explain to you why its important to have safety but not too much what are the best methods and the one you can use today to start optimizing your inventory level but also the service for your customer [Music] okay so why do we need safety stock we do need safety stock to prevent shortages and out of stock right you dont want to see this situation with your customers and thats why we use the safety stock to mitigate against a certainty we have two kind of uncertainty we have the demand and we have the lead time if you knew exactly what would be your demand your if your focus accuracy was 10

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