Abstract:
Purpose of the Rescarch-This thesis is based on studying the relationship of lead time
uncertainty and its impact on the safety stock that retail stores have to keep. The basic motive
behind this research was that to get to know the actual practices of lead time uncertainty in
retail stores ofKarachi Pakistan and how they carry their operations with reference to Supply
chain department.
Research Design and Sampling- The researcher presented the research design according to
the nature ofthe study. The nature ofthis study is descriptive in nature and total sample size
was selected 50 respondents from retail stores of the Karachi. The sampling techniques was
used non probability judgemental technique. The result were interpreted with the help of
SPSS software.
Findings of the Result- The findings were revealed that the lead time uncertainty, forecast
errors and on time supply has the significant impact on safety stock because companies have
to maintain it’s stock to optimum level to avoid stock-out situations. Also it verdicts that
there is not significant relationship between change in customer demand and safety stock.
Limitations of the Study- Due to lack of resources such as time and city circumstances,
research was limited and did not cover all the areas of city.
Practical Implication- This study would be useful for he managers, suppliers and general
public because it includes the clear and deep knowledge about the supply chain concepts and
real practices oflead time uncertainty and safety stock.
Future Implications- The researcher highlighted certain future implications for other
researcher such as they must cover all the areas of the retail stores to get the exact and
accurate results. Secondly, the researcher must try to increase the sample population because
with the help of large sample size, it would be easy to distinguish the practices ofthe retail
stores.
