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Safety stock formula is used to calculate the minimum amount of inventory needed to prevent stockouts.
Safety stock = (Maximum daily usage x Maximum lead time) - (Average daily usage x Average lead time)
It is important to consider factors such as demand variability and supplier reliability when determining safety stock levels.
Safety stock can help prevent stockouts and ensure customer satisfaction.
However, too much safe...
Senior Technical Account Manager
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Bosch
Stanley Black & Decker
Makita U.S.A.
Hitachi