Chapter 5 – Anticipated Lead Times & Safety Stock

The topics covered in Chapter 5 include:

  • The Anticipated Lead Time
  • Lead Times and Vendor Shipments
  • The Components of the Anticipated Lead Time
  • Advantages of Manually Maintaining the Anticipated Lead Time
  • Dealing with Unusual Lead Times
  • Other Lead Time Situations
  • Long Lead Times Are Not the Problem, Inconsistent Lead Times Are
  • Safety Stock
  • How to Maintain Safety Stock
  • How Much Safety Stock Do You Need?
  • Items That Require Less Safety Stock
  • Bringing In Large Safety Stock Quantities at Beginning of a Season
  • Multi-Echelon Safety Stock
  • Using Residual Inventory to Determine If Safety Stock is Adequate