Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
With 70 units of safety stock and an average weekly demand of 14 units for 5 working days in a week 25 days can be covered if the shipment from the supplier is delayed.
What is safety stock ?
Logisticians refer to a degree of excess stock as "safety stock" to reduce the danger of stockouts (a shortage of raw materials or packaging) brought on by erratic supply and demand. A sufficient safety stock level enables business activities to operate as planned. When demand, supply, or production yield are unknown, safety stock is kept as a precaution against stockouts.
A safety stock can be regarded as an additional supply of a product that is kept on hand to lessen the likelihood that it will run out. It serves as a buffer stock in the event that sales are higher than anticipated or that the supplier is unable to deliver the extra units by the scheduled date.
To solve the question :
Given,
Safety stock = 70 units
Average weekly demand for 5 working days will be 14 units
To calculate working days that can be covered :
(Safety stock / Average weekly demand) × working days
= (70/14) × 5
= 5 × 5
= 25 days
Hence, 25 days can be covered with the safety stock if the shipment from the supplier is delayed.
To know more about, safety stocks, visit :
https://brainly.com/question/13638496
#SPJ4
Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
