Determining Safety Stock with Uncertain Demand
Read this article. It concludes by suggesting that errors in ordering safety stock can be affected by costs, time, and human error. What other factors should a company consider when ordering safety stock to avoid uncertainty?
Application
This safety stock model could be used in uncertain demand scenario determination when mutually dependent variables are considered. Besides, in other cases the model could be used in a trial basis to see the application. Here, the point to be noted that the, the model is still in theoretical format. It needs to be used in real life scenario.