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Operations And Supply Chain Management
Found in: Page 579
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

Should safety stock be necessary for an MRP system with dependent demand? If so, why? If not, why do firms carry it anyway?

Safety stocks are not compulsory in an MRP system with dependent demand.

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Step by Step Solution

Safety stock

Safety stock is also known as buffer stock. It is a stock that returns all the unreliability in supply and demand or the minimum quantity of inventory that the organization keeps with them.

Safety stocks are not necessary for the MRP system.

Safety stocks are not important in the MRP system with dependent demand because the manager oversees all the quantity of usage. The firm carries it because it helps meet the changes done by customers' independent demand.

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