To mitigate the effect of another terrorist attack, however, manufacturers should maintain an additional inventory designated “Strategic Emergency Stock.” This stock is not used to buffer day-to-day fluctuations. It can only be used in the case of an extreme disruption. The costs of carrying this extra inventory represent the price of the premium for the insurance it buys.
It is unreasonable to expect managers to ignore this inventory when a service failure takes place in normal times. To make sure that the organization will not simply become accustomed to the higher level of inventory, two policies should be adopted: First, the strategic inventory should be replenished immediately in a “Sell-One-Store-One (SoSo)”