How does lead time impact the value of safety stock in global supply chains?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
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 How does lead time impact the value of safety stock in global supply chains? 

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Safety stock refers to the inventory kept on hand to counter the risk of stockouts because of the variabilities in supply and demand.

Safety stock is kept by considering the lead time in mind. It is obvious that the longer the lead time the more the safety stock should be kept to compensate for the stockouts.

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