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But there's a balance between maximizing sales with more safety stock and minimizing waste with less, because of uneven demand fluctuations.
by sct202 8y ago
But there's a balance between maximizing sales with more safety stock and minimizing waste with less, because of uneven demand fluctuations.
- michaelt 8y agoAh, but if the 2-pint jugs of standard semi-skimmed milk are out of stock, maybe you buy the 1-pint or the 4-pint or the organic. The customer response depends on both the product category and the time of day, for obvious reasons. And I guarantee the likes of Wal-Mart will have run studies on this and chosen the optimal ordering level for milk in their stores.