In a probabilistic inventory model, there is no guarantee that the planned safety stock will exist.

Question

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In a probabilistic inventory model, safety stock is determined based on the probability of demand and lead time variability during the replenishment lead time. This means that the safety stock level is not fixed and can change based on different demand patterns or lead time variability. Therefore, there is no guarantee that the planned safety stock will exist.

In a Probabilistic Inventory Model, There Is No Guarantee That