When safety stock is deemed absolutely necessary, the usual policy is to build it into (increase) the inventory requirements within the MRP logic.

Question

Quizplus · Accepted Answer

Safety stock is a buffer stock that is kept to protect against any demand or supply variability. It is usually built into the inventory requirements within the MRP (Material Requirements Planning) logic to ensure that enough inventory is available to meet customer demand even during unexpected situations such as supplier delays, machine breakdowns or sudden spike in customer demand.

When Safety Stock Is Deemed Absolutely Necessary, the Usual Policy