We can usually determine an appropriate safety stock even if we are unable to accurately assess the actual cost of a stockout.

Question

Quizplus · Accepted Answer

While it is ideal to have a clear understanding of the cost of a stockout, it is still possible to determine an appropriate safety stock based on factors such as demand variability, lead time variability, and order frequency. This can help mitigate the risk of stockouts and ensure adequate inventory levels.

We Can Usually Determine an Appropriate Safety Stock Even If