A retailer that sells 10-pound bags of senior dog food has found that some weeks he sells thirty 10-pound bags and other weeks he sells none. A reorder can take up to three weeks. The probability of running out of that size bag of dog food and alienating his customers can be alleviated by maintaining:

Question

Quizplus · Accepted Answer

Safety stock is extra inventory held to prevent stockouts due to demand variability or supply delays, such as the three-week reorder time mentioned.

A Retailer That Sells 10-Pound Bags of Senior Dog Food