I hope that you have enjoyed reading the article, \u201cA New Safety Stock Calculation.\u201d<\/p>\n
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Safety stock levels are undoubtedly being reviewed in supply chain departments throughout the world these days. With Hurricanes Katrina and Rita devastating the Gulf Coast and forcing many suppliers to declare Force Majeure<\/em>, executives are asking supply chain managers \u201cWhat should you have done to prevent us from having interrupted supply?\u201d<\/p>\n Maintaining higher inventory and safety stocks is one answer but certainly not the only one. In fact, it may be the last resort.<\/p>\n Forward buying prior to hurricane season, identifying substitute suppliers, and countless other options exist. Focus on identifying the option with the least total cost without compromising continuity of supply.<\/p>\n I know, you\u2019ve heard so much about the hurricanes that you probably were hoping not to read about them here too. But, let\u2019s face it, their effects are still to this day being felt throughout the supply chain. And we don\u2019t know what Force Majeure<\/em> event will come next.<\/p>\n (By the way, if you don\u2019t know what Force Majeure<\/em> is, you may want to check out our online course \u201cSupply Management Contract Writing\u201c).<\/p>\n Until next time, good luck keeping your continuity of supply!<\/p>\n","protected":false},"excerpt":{"rendered":" I hope that you have enjoyed reading the article, \u201cA […]<\/p>\n","protected":false},"author":12,"featured_media":4116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n