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The safety stock claculation is influenced bya Demand and lead ti

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the safety stock claculation is influenced by
a. Demand and lead time uncertainty
b. the economic order quantity
c. price breaks
d. the reorder point
Solution
Answer is option (A)
Reason:
Demand: The system determines the demand type from the
settings you made in the SFT planning profile. You can
determine whether it is regular or sporadic demand, or
whether the system is to automatically determine the
demand type using historical data. hence demand
influenced the safety stock
Lead Time:
Supply problems tend to be related more to a vendor than
an item and the severity of the variations do not fall into
the pattern of a normal distribution. The safety stock
calculated for demand variation will also cover for some
supply variations, however, the best way to deal with
variable supply is to have a high level of communication

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the safety stock claculation is influenced by a. Demand and lead time uncertainty b. the economic order quantity c. price breaks d. the reorder point Solution Answer is option (A) Reason: Demand: The system determines the demand type from the settings you made in the SFT planning profile. You can determine whether it is regular or sporadic demand, or whether the system is to automatically determine the demand type using historical data. hence demand influenced the safety stock Lead Time: Supply problems tend to be related more to a vendor than an item and the severity of the variations do no ...
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