Sir, This is a nice presentation. In this module you have deliver “It is safe to deliver early then required”. But it will increase the inventory level for a certain time and receiver end may not be willing to receive early deliver materials, etc.. Its my own opinion, which may not be right.
Assalamualikum, thanks for observation and point you made. This statement might have brought where the safety stock issue came up. When the regular stock goes down to reorder point than replenishment order placed. Here avg. Leading time counted in the reorder level. But remember the delivery leading may very for several reason so early is better. Example: Avg. Delivery leadtime of A raw matarial is 45 days. It may vary 5 to 7 days earlier or late. It is always good to earlier than late. And ware house is open to except this tolerance since this is already calculted and communicated.
2 Comments
Sir,
This is a nice presentation.
In this module you have deliver “It is safe to deliver early then required”. But it will increase the inventory level for a certain time and receiver end may not be willing to receive early deliver materials, etc..
Its my own opinion, which may not be right.
Assalamualikum, thanks for observation and point you made. This statement might have brought where the safety stock issue came up. When the regular stock goes down to reorder point than replenishment order placed. Here avg. Leading time counted in the reorder level. But remember the delivery leading may very for several reason so early is better. Example: Avg. Delivery leadtime of A raw matarial is 45 days. It may vary 5 to 7 days earlier or late. It is always good to earlier than late. And ware house is open to except this tolerance since this is already calculted and communicated.