WORKING-CAPITAL-MANAGEMENT5 MIN READ
Negotiate Safety Stock With Operations
Use reorder point logic to discuss inventory cash release without ignoring service risk.
Reorder point = lead-time demand + safety stock Stockout risk Earned buffer Cash drag Maya M Operations lead L Listen Model T Trade-off Inventory cut 20 sec The pushback Finance wants $400K released from inventory. Operations worries the cut will create missed shipments. A cash target without service design creates resistance and bad stock decisions. $400K
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