1.Walk me through how you'd set a safety stock level for a product.
Why they ask
Safety stock is where demand variability, lead time and service targets meet. It shows whether you understand the tradeoff between running out and tying up cash.
How to answer
- Name the inputs: demand variability, supplier lead time and how much that lead time moves, and the service level the business wants
- Explain that higher service targets and less reliable suppliers both push the buffer up
- Mention that you'd segment items, since a fast-moving A item and a slow C item shouldn't get the same treatment
- Say you'd review it on a schedule, because a formula set once and forgotten drifts out of date

