Joshua Hale

A Comprehensive Approach to Safety Stock Optimization in E-Commerce

Although there is a massive amount of research on safety stock optimization, the majority of these approaches fall short in comprehending the real-world challenges and operational environment present in e-commerce supply chains. Many current safety stock optimization methods that are commonly used and accepted consider assumptions that are frequently violated in practice and do not adequately account for typical supply chain challenges such as vendor fill-rate performance, new items, item unavailability, missing data, and the dynamic nature of today’s supply chains.

This presentation aims to equip listeners with an adaptable set of methodologies that can be generalized to other supply chains. We will outline a methodology that provides an end-to-end safety stock approach that combines theoretical approaches and practical considerations. Our approach to safety stock optimization acknowledges the unique challenges posed by real-world supply chain environments, which helps to achieve a resilient and responsive supply chain