If service level is 50%, then safety stock is equal to 50% of lead time demand.

Name: If service level is 50%, then safety stock is equal to 50% of lead time demand.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Service level percentage does not directly equate to a percentage of lead time demand for calculating safety stock. Safety stock is determined by the desired service level, but it involves statistical calculations based on demand variability and lead time variability, not a simple percentage of lead time demand.

If Service Level Is 50%, Then Safety Stock Is Equal