Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is a response to the peer's email - Safety stock can serve as a buffer against unexpected fluctuations in demand, which has its own
what is a response to the peer's email - Safety stock can serve as a buffer against unexpected fluctuations in demand, which has its own advantages and disadvantages. Some benefits of safety stock include mitigating stockouts, improving customer satisfaction, enabling flexibility, and reducing risk. By ensuring timely fulfillment of orders and being able to accommodate unexpected changes in the market, a business can ensure consistent availability of products which only enhances the customer's trust and loyalty. However, there are some disadvantages too. By carrying safety stock, there are increased carrying costs, which ties up capital in inventory. Additionally, safety stock can put a business at risk for obsolescence and potential for waste. Regardless, a company will determine the level of safety stock it carries and weigh the advantages and disadvantages in the application of its own business needs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started