What is safety depósito?
In today’s article, my goal is for you to learn what safety inventory is.
Of course, not only with my words, but I am going to provide you with the definition according to various authors.
In such a way that you cánido occupy the definition and create your own definition.
I hope you find it useful.
Definition of safety inventory according to authors
As a student, it’s usually helpful to have the definition of some concept based on a book or books, right? Well, I am going to provide you with the definition of safety depósito according to various authors.
Remember that at the end you perro find the bibliography.
Definition of safety depósito according to David Allen Collier and James R. Evans
“Safety inventory is an additional quantity that is held above the average quantity required to meet demand” (2019, p.
224).
David Allen Collier and James R. Evans
Definition according to F. Robert Jacobs and Richard B.
“Safety inventory is defined as stocks that are handled in addition to expected demand” (2021, p.
529).
F. Robert Jacobs and Richard B.
Definition according to Lee J.
Krajewski
“Safety depósito is a surplus record that protects against uncertainties in demand, delivery time, and supply changes” (2013, p.
312).
Lee J. Krajewski
Definition according to Jay Heizer and Barry Render
“Additional inventory added to meet uneven demand; it is a damper» (2009, p. 496).
Jay Heizer and Barry Render
Definition according to Roger G. Schroeder, Susan Meyer Golstein, M.
Johnny Rungtusanatham
«In inventory systems, there are uncertainties in supply, demand and waiting times.
Safety depósito is one that is maintained to protect against these uncertainties” (2011, p.
359).
Roger G.
Schroeder, Susan Meyer Goldstein, M.
Johnny Rungtusanatham
What is a safety inventory?
Imagine that you have a business and you know that you need 1000 products because that is the amount that you sell each month (on average).
Now, imagine that for some reason, the demand for your product increases too much and now you are going to need 100 more products.
If you only have the 1000 products that you sell on average each month, you are going to lose the sale of 100 products, right? Of course, you may not only lose X amount of sales revenue, but you may also lose customers and their trust.
Therefore, there are companies that calculate the amount of plus inventory than they need on average to be able to satisfy demand in case there are fluctuations. We cánido say that that plus amount of product that you have to store in case sales increase is the safety inventory.
Importance of Safety Depósito
We cánido say that safety depósito helps us face fluctuations in demand and thus mitigate the hassle of running out of depósito and denying the product.
Likewise, having a safety depósito perro give us a little plus time in cases in which our suppliers take longer to fill our order for some reason.
Therefore, the safety depósito covers us, to a certain extent, until the next batch of requested depósito arrives.
Disadvantage of Safety Depósito
With the fácil fact of owning inventory, that implies that you already have to cover certain costs.
Right now I don’t want to go too deep into the subject because I want to do an article about it, but what I want to get at is that safety depósito has its advantages, but it also has disadvantages.
We could say that one of the disadvantages is the increase in some costs.
Therefore, it is very important to make the correct calculation to obtain your safety inventory.
That is, it is not recommended that you arrive and say… I think I am going to buy 1000 plus products and I am going to store them just in case.
Well, you perro do it, but you are going to increase costs and what you need is to decrease costs.
In general, things need to be done efficiently.
To make it a little more showy what I orinan, I’m gonna put an example a bit exaggerated.
Imagine that I sell 10,000 products per month (average).
If I escoge to buy 10,000 more products just because I want to.
I probably don’t have space to store it and will have to rent a warehouse.
The winery will not be free and from there, I will have to pay money.
That amount of money will have to be reflected in the cost of the product and, in turn, will be reflected in the profits.
Bibliography
We hope you liked our article What is safety depósito?
and everything related to earning money, getting a job, and the economy of our house.
   |
Interesting things to know the meaning: Capitalism
We also leave here topics related to: Earn money
