Hey! Is this correct way to calculate safety stock? You just assume 10 days worth of safety stock is what we need. And you multiply "Average" demand with 10. My question is how do you assume you need 10 days worth of safety stock? Do we have a logic behind this? Also you are just averaging the forecasted demand. Is this right?
Hey! Is this correct way to calculate safety stock? You just assume 10 days worth of safety stock is what we need. And you multiply "Average" demand with 10. My question is how do you assume you need 10 days worth of safety stock? Do we have a logic behind this? Also you are just averaging the forecasted demand. Is this right?
Thank you for you video :)