ECONOMICS

Detailed explanation-1: -Regardless of the size of your company, having a proper inventory management system is very important for any business. It can help you keep track of all your supplies and determine the exact prices. It can also help you manage sudden changes in demand without sacrificing customer experience or product quality.

Detailed explanation-2: -The purpose of safety stock is to make sure your customer service levels stay high – and your supply chain runs smoothly. With safety stock in place, your workers are not running around trying to constantly locate and reorder parts – they’re fulfilling orders to your customers.

Detailed explanation-3: -Safety inventory is carried to satisfy demand subject to unpredictable demand fluctuations and to reduce product shortages. This type of inventory cushion is also called safety stock or buffer inventory. Safety stock can help the supply chain manager improve product availability in the presence of uncertainty.