Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:

Improved information throughout the supply chain can lead to the de-emphasis of safety stock for

the following reasons:

Enhanced Visibility: Improved information systems provide better visibility into inventory levels,

demand forecasts, and supply chain activities, enabling more accurate planning and inventory

management.

Accurate Forecasting: With better data and analytics, companies can make more accurate demand

forecasts, reducing the need for excess safety stock to cover unexpected demand fluctuations.

Real-time Data: Real-time information allows for quicker responses to changes in demand or supply

conditions, minimizing the reliance on safety stock as a buffer.

Collaborative Planning: Sharing information with supply chain partners facilitates collaborative

planning and replenishment strategies, reducing the uncertainty that safety stock is meant to

mitigate.

Reference:

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.

Pearson.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain.

McGraw-Hill.