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in inventory management is always tricky to manage the financial trade-off between purchasing inventory and the cost of the stock out this balance essentially depends on two factors first is fairly obviously demarked and understanding the amount of items that will be consumed or bored and second is the lead time I either delay between a reorder decision and the stock being available for customers this is fairly simple until you consider that these two factors are subject to uncertainties themselves demand can vary massively due to customer behaviors which as we know from that ugly dad trainer trend can evolve in rather unpredictable ways and if youve ever waited ages for a delivery to arrive you will know that variations in lead time can occur as suppliers or transporters are faced with unplanned difficulties unfortunately if you wait until a stock out occurs it is normally far too late to place an order as such we need a way of controlling this level of uncertainty and being prepare
