Taming the Safety Stock Beast

Calculating Safety Stock Level in QAD

One of the most important parts of operations in any company is determining appropriate inventory levels. If you have too much inventory, you’ll tie up your working capital and wreak havoc on your cash flow. If your inventory is too low, you’ll have shortfalls in raw materials or finished goods that threaten timely delivery and hamper your ability to adequately serve your customers.

To reduce the risk of shortfalls, or stockouts, many companies keep an extra level of safety stock to ensure consistent production and the timely delivery of products.

Determining safety stock levels is a complex and ongoing task for inventory managers since so many rapidly changing variables need to be considered. Forecast changes or inaccuracies, fluctuations in customer demand, lead time variables for raw materials, as well as your company’s cash flow situation all contribute to maintaining appropriate safety stock levels.

32 Soft’s Safety Stock Calculator helps you to tame the Safety Stock Beast and gives you the power to conquer this crucial piece of the supply chain. Using real-time QAD data, this tool makes it easy to monitor, review, analyze and manage your safety stock levels.

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