When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

Last Updated on February 4, 2022 by Admin 2

When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

  • there is less in-transit inventory.
  • the total variability of demand is reduced.
  • average cycle stock is reduced.
  • safety stock becomes available-to-promise.
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