Safety Stock Cost Model by Friesian Analytics

Whether you're an online retailer, a brick-and-mortar store, a manufacturer, or any business that maintains inventory, determining the right service levels — which inform safety stock levels — can have a significant impact on your profitability. Traditional methods like ABC analysis may fall short in ensuring the most profitable outcomes for your inventory.

Enter Dr. Jay Zhou, founder of Friesian Analytics, who has pioneered the Safety Stock Cost Model. This approach considers all costs that influence the profitability of a specific inventory SKU. The ultimate goal? Identify the service level or safety stock at which total costs are minimized, maximizing profitability in turn. For a deeper dive into the Safety Stock Cost Model, watch the accompanying video where Dr. Zhou elucidates the model in a past webinar.

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