Garg’s Principle: A Predictive Framework for Safety Stock Optimization and Over-Stock Reduction Across Forecast Horizons
Keywords:
Safety Stock Optimization, Dynamic Net Availability, Horizon-Based Feasibility Control, Demand Verification, Enterprise Resource Planning IntegrationAbstract
Traditional safety stock methods implemented in enterprise resource planning systems rely on static, service-level-based formulas derived from historical demand variability, enforcing uniform inventory buffers across planning periods without explicitly evaluating future time-phased feasibility
References
D.F. Pyke et al., "Inventory Management and Production Planning and Scheduling (Third Edition)", ResearchGate, 2001. Available: https://www.researchgate.net/publication/239386432_Inventory_Management_and_Production_Planning_and_Scheduling_Third_Edition
P.H. Zipkin, "Foundations of Inventory Management", McGraw-Hill International Editions. Available: https://sutlib2.sut.ac.th/sut_contents/H105195.pdf


