Classification drives the whole model: once a SKU is placed in the ABC times XYZ matrix, its service level, safety stock, and reorder point all follow automatically.
Safety stock uses the combined-variance formula, accounting for variability in both demand and supplier lead time rather than just one or the other. Reorder point adds a review-period buffer for operators who check inventory on a cycle instead of continuously. Order quantity is constrained to clear your supplier’s MOQ and round to packaging lot size.
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