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Safety Stock by Part Type

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Your question is Safety Stock by Part Type. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Scenario

You're advising an operations team that needs to set inventory policy across very different component types. Some parts are expensive, supply constrained, and slow to replenish, while others are cheap and can be sourced locally with short lead times.

Question

How do you determine the optimal safety stock level for a high-value, long-lead-time component versus a low-cost, locally sourced part?