What can a user do if they need to adjust stock levels due to irregular demand?

Establishing a safety stock level is essential for managing stock levels in response to irregular demand. Safety stock acts as a buffer against fluctuations in demand and supply chain uncertainties. By setting an optimal safety stock level, a business can ensure it has enough inventory to meet unexpected increases in demand without running into stockouts, which can result in lost sales and dissatisfied customers.

In contrast, while conducting annual physical inventory checks can help assess overall inventory accuracy, it does not directly address the need to adjust for irregular demand proactively. Implementing seasonality factors in forecasting is beneficial but may not fully account for sudden changes in demand patterns that require immediate adjustments. Utilizing manual inventory adjustments can be an option, however, it is often reactive and can lead to inaccuracies if not managed carefully. Establishing a safety stock level offers a proactive and systematic approach to maintaining the necessary inventory levels even in the face of unpredictability.