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Safety stock

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1. Is Safety Stock required in an MRP system? Why?

2. Does using JIT negate the use of an MRP system? Why?

3. Most practitioners currently update MRP weekly or biweekly. Would it be more valuable if updated daily, or even on a real-time basis? Explain why.

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Safety stock is depicted.

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1) Safety stock is almost not required in an MRP system so it is not necessary to keep a safety stock if MRP system is used. The main reason behind this is, in a MRP system the materials can be planned to arrive in a precise quantity and at the exact time whenever it is necessary. So the variations in ...

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Jayant Kumar, MBA
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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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