How Safety Stock Influences Order Timing Decisions

Running head: STOCK INFLUENCERS AND TIMING DECISIONS 1
How Safety Stock Influences Order Timing Decisions
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STOCK INFLUENCERS AND TIMING DECISIONS 2
How Safety Stock Influences Order Timing Decisions
To deal with the uncertainties in demand and supply the safety of stock is executed by
certain measures and usually it’s through orders of timing decisions. The safety inventory stock
sometimes referred to the buffer stock by inventory managers when they are trying to describe an
additional layer of stock to cushion against risk. Just to mention, it is due to the shortfall of raw
or finished goods can change the uncertainness in the supply of demand. From my analytical
perspective, this article assesses how the influencers order timing decisions and the importance
to the organization.
Moreover, it is due to the imbalances in inventory from undelivered goods to suppliers
owing to the lack of raw materials that result to the excessive reduction in the amount in stock
inventory hence obstruct cash flow and cheap service levels. With this in mind, the executive
who is the major influences are obliged that this rule-based approach can be manipulated by
timing decisions Gaur et al (2017). I can pinpoint that; the rule-based approach is less than
accurate when management needs to determine the optimal levels of inventory in numerous
operations. Additionally, such a dependable method of calculation will not only justify the
organizational continuity but also give a mathematical rational to the leaders Kannan et al
(2013). Palpably, such an approach will balance the scale by minimizing inventory cost and
maximizing customer service.
Hançerlioğulları, et al. (2016) claims the influencer orders the timing decisions and are
done through four distinctive rule-based approaches. To begin with, the safety stock is
manipulated to protect against the unpredicted changes in raw materials that end up affecting the
supply and demand. Secondly, due to the unforeseen future inaccuracies that may arise in