Excess capacity versus finished goods safety stock

Excess capacity versus finished goods safety stock

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Article ID: iaor199154
Country: United States
Volume: 29
Start Page Number: 36
End Page Number: 40
Publication Date: Dec 1988
Journal: Production and Inventory Management Journal
Authors: ,
Abstract:

An alternative to safety stock for responding to random fluctuations in demand to carry excess capacity. In this article, the authors suggest an approach for gaining some insight into evaluating the benefits of excess capacity against safety stock.

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