The Role of Safety Inventory in a Supply Chain Forecasts are rarely completely accurate If average demand is 1000 units per week,then half the time actual demand will be greater than 1000,and half the time actual demand will be less than 1000;what happens when actual demand is greater than 1000? If you kept only enough inventory in stock to satisfy average demand,half the time you would run out o Safety inventory:Inventory carried for the purpose of satisfying demand that exceeds the amount forecasted in a given period SEIEE AU406 3+ - SEIEE AU406 3 The Role of Safety Inventory in a Supply Chain  Forecasts are rarely completely accurate  If average demand is 1000 units per week, then half the time actual demand will be greater than 1000, and half the time actual demand will be less than 1000; what happens when actual demand is greater than 1000?  If you kept only enough inventory in stock to satisfy average demand, half the time you would run out  Safety inventory: Inventory carried for the purpose of satisfying demand that exceeds the amount forecasted in a given period