On the surface, you may think this is a rather pedestrian return on an investment but consider the income it produces as well as the measure of safety this stock provides. (pluggingandplaying.com)
Once you have calculated everything, you will be presented with the results of efficient inventory levels, while maintaining an adequate safety stock. (commercialcapitaltraining.com)
The result is shorter lead times, reduced safety stock, and better on - time delivery performance. (aeb.com)