document: Managing safety and strategic stocks to improve materials requirements planning performance This paper provides a methodology for managing safety and strategic stocks in materials requirements planning -LRB- MRP -RRB- environments to face uncertainty in market demand . A set of recommended guidelines suggest where to position , how to dimension and when to replenish both safety and strategic stocks . Trade-offs between stock positioning and dimensioning and between stock positioning and replenishment order triggering are outlined . The study reveals also that most of the decisions are system specific , so that they should be evaluated in a quantitative manner through simulation . A case study is reported , where the benefits from adopting the new proposed methodology lie in achieving the target service level even under peak demand conditions , with the value of safety stocks as a whole growing only by about 20 per cent
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