Discuss the Relationship Between Service Level, Uncertainty, Safety Stock, and Order Quantity


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What is the impact of this trend on supply chain inventory?


Study Questions:

1. Discuss the relationship between service level, uncertainty, safety stock, and order quantity. How can tradeoffs between these elements be made?


2. Discuss the disproportionate risk of holding inventory by retailers, wholesalers, and manufacturers. Why has there been a trend to push inventory back up the channel of distribution?


3. Customer based inventory management strategies allow for the use of different availability levels for specific customers. Discuss the rationale for such strategy. Are such strategies discriminatory? Justify your position.


Challenge Question 1:

1.Consumers are expressing increased demand for product customization in the form of features,labelling.colour,or packaging.What is the impact of this trend on supply chain inventory?What strategies can firms and supply chains use to mitigate this impact?

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