When safety stock is deemed absolutely necessary, the usual policy is to build it into the projected on-hand inventory of the MRP logic.

Question

Quizplus · Accepted Answer

This is because safety stock is meant to act as a buffer against unforeseen events or changes in demand, so it makes sense to include it in the projected on-hand inventory to ensure that enough inventory is available to meet customer demand.

When Safety Stock Is Deemed Absolutely Necessary, the Usual Policy