Safety Stock Studies in Aerospace Organisations in Times of Transformation
Safety Stock Studies in Aerospace Organisations in Times of Transformation

Author(s): Federico Leopardi
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Summary/Abstract: Amid the ongoing recovery from the disruptions caused by COVID-19 in aviation supply chains, optimizing resources is crucial for competitiveness and cost reduction. Major aircraft manufacturers have been ramping up their programs, placing added pressure on supply chains to adapt. Effective supply chain management requires careful inventory optimization, with Safety Stock (SS) playing a crucial role as a buffer against stockouts or disruptions. SS can be strategically placed before or after production to address uncertainties. This gap in niche areas, affecting various sectors beyond aerospace, underscores the need for a thorough examination of challenges faced during times of transformation. Factors influencing SS creation and decisions regarding Make/Buy items were explored, along with the optimal placement of SS within the Bill of Materials (BOM). To navigate these complexities, in this paper, the authors have applied qualitative methodologies involving interviews with key stakeholders from procurement, production, and planning. Successfully managing times of change requires a nuanced understanding of a company’s operations, emphasizing the importance of effective SS management in turbulent times.

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