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Lead Time / Preferred Stock Level / Safety Stock Level
I'm trying to set the Preferred Stock Level and the Safety Stock Level in "days".
Does anyone set their Safety Stock Level as a multiple of lead time?
eg: Safety Stock Level = lead time x 5
Does anyone set their Preferred Stock Level as a multiple of lead time?
eg: Preferred Stock Level = lead time x 10
If so, what multipliers do you use? If so, do you use one set of multipliers for items with a short lead time and another set of multipliers for items with long lead times?
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