Allocated stock and safety stock - mrp system, Microeconomics

Allocated Stock and Safety Stock 

Allocated stock 

A category of stock which ensures that current stock is set aside and not issued under the normal procedure. 

Safety stock 

A category of stock which ensures that the supply of an item is always greater than demand. Safety stock is held if supply is uncertain, possibly in anticipation of a sudden increase in demand or in order to reduce supply time of a long LT item.

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