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How is service level related to the amount of buffer stock held by an organization?

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Question added by Daniel Kwadwo
Date Posted: 2017/04/07
Mohammed Awad
by Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

Customers prefers to deal with suppliers who has enough stock in there warehouses.  This means that this supplier is able to provide a faster delivery and can perform a better after-sales-service.

 

This also enables the customer to know that the product he/she is buying is still active and available in the market.

 

It will also allow the customer to know that the supplier is financially strong keeping enough stock in his/her warehouse.

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