Id : 16mkt08

Answer to the Question number 1.

Lead time helps to reduce safety inventory without hurting in many ways likes-
 Deceasing lead time, result in a lower level of safety stock without hurting product
availability.
 When lead time is reduced, the product availability will increase and easy to give
customers according to Their demand.

Answer to the Question number 2.

Super market of physical store :
Safety inventory is the best to use here.
Causes behind the uses of Safety inventory.
 Uncertain and unknown demand.
 Reservation of necessities is must.
 A lot of chance to fluctuate demand.
 Physical issue to deliver necessities.

Super market of Online store :

Cycle inventory is perfect to use here.
Causes behind the uses of cycle inventory.
 Fully online dependent and
 It’s possible to set lead time.
 Demand wavering occurs a few.
 Demand is all about known.