Logistics Management, Milk Run Logistics, Milk Run System, Logistics Systems, Logistics Company

Safety Stock Design, Buffer Stock Design

Safety or Buffer stock calculation concern with lead time management, Lead time is mean the number of minutes, hours, or days that must be allowed for the completion of an operation or process, or must elapse before a desired action takes place.

So, process point of view can separate Lead time to be 6 Portions ;
1. Vendor preparation lead time
2. Shiping lead time
3. Delivery lead time
4. Departure and received lead time
5. Wherehouse process lead time
6. Stock life cycle lead time

The important point of Logistics Lead time implementation is we need to set up Safety stock before reach next order issued to meet the Stocks usage timing. We found fectors that effect to setting Buffer stock in many company classify criteria by the concept ;

Improvement point
1. Vendor capability
2. Vendoe long lead time
3. Production fluctuation
4. Process restriction
5. Relate with takt time (Production volume)

*1. Lead time is one of good tools that be able to visualize muda in process, when we deeply analyse behaviour of these value ,we might save more and more resources.
*2. Vehicle sequence stability directly affect to inventory level, Relation between these things can show buffer stock.