Playbook
Safety stock recalibration in five steps.
Replace rules of thumb with measured variability, without a big-bang project.
WERISCO editorial28 August 20267 min
1. Segment
Classify SKUs by value (ABC) and demand variability (XYZ). Different classes deserve different service targets.
2. Measure
Compute demand variability over the replenishment horizon and lead-time variability from receipts.
3. Set targets
Choose service targets by class: high for critical A items, lower for C items with substitutes.
4. Recalculate
Compute safety stock from targets and measured variability. Compare with current settings.
5. Phase in
Change the biggest gaps first, monitor for four to six weeks, then roll out.
Run the Risk, every week.
One supply-chain shock, decoded in numbers, and what a data-driven plant does about it.
