Given the product variety and high demand uncertainty in most high-tech supply chains,a significant fraction of the inventory carried is safety inventory.

Question

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Safety inventory is held in order to protect the supply chain from uncertain demand or supply disruptions. In high-tech supply chains, which often have a large variety of products and unpredictable demand, safety inventory is necessary to ensure that customer demand can be met even when unexpected events occur. Therefore, a significant amount of inventory carried in these supply chains is safety inventory.

Given the Product Variety and High Demand Uncertainty in Most