When safety stock is deemed absolutely necessary, the usual policy is to build it into the projected on-hand inventory of the MRP logic.
The inaccurate market forecasts and the sudden demand surges can happen during a busy or festive season and so the Safety stock protects one against it. Thus, in order to mask issues in inventory management, forecasting, supplier unreliability, or logistics safety stock is used.
However, there is no need for safety stock in the inventory systems based on the dependent demand, which is one of the main benefits of the MRP approach.
Hence, when safety stock is deemed absolutely necessary, the usual policy is to build it into the on-hand inventory of the MRP logic.
To learn more about safety stock here:
https://brainly.com/question/14054595
#SPJ4