DETERMINE THE AMOUNT OF SAFE STORAGE OF BUSINESSES IN THE CONTEXT OF COVID-19 PANDEMIC

Thi Van Nga Nguyen, Dinh Toan Tran, Van Vinh Tran, Thanh Thuy Nguyen, Thi Tuyet Le

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Abstract

The article looks at the role of safe stock in the business and considers safe stock to suit the current context of Covid-19 pandemic. The demand of the business has uncertain fluctuations, lead time can also be interrupted, possibly causing lead time to go far beyond the originally expected time. Following the research by Schmidt et al (2012), the paper has done certain calculations based on assumptions about the amount of demand and lead time of a product type. Accordingly, the study has identified safe stock with a safe level of 1.28 corresponding to the target customer service level of 90%. The results of the study are helpful for businesses in considering optimal safety stock.

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References

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