what is the difference between Build point and Preferred Stock Level?

AI generated answer (using internal Slack threads):

****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** The difference between Preferred Stock Level (PSL) and Safety Stock Level lies in their purpose and how they are used in inventory management. Preferred Stock Level (PSL): This is the ideal quantity of a particular item that you want to have on hand to fulfill your daily demand. It is the level of stock that you aim to maintain operationally. If you have a PSL of 100 units, for example, it means you ideally want to have 100 units of that item in your inventory at all times. Safety Stock Level: This is the minimum amount of an item that you always want to have in stock, regardless of the demand or supply conditions. It acts as a buffer to prevent stockouts in case of unexpected demand spikes or supply delays. For instance, if you set a safety stock level of 50 units, it means you always want to have at least 50 units of that item in your inventory, no matter what. In your example, if you always want about 50 of Item A in stock, that would be your Safety Stock Level. If you want a purchasing suggestion to appear on Order Items when you have 5 or less of item A in stock, you would set your reorder point at 55 (50 safety stock + 5 units to trigger the reorder). The Preferred Stock Level would be higher, depending on your average daily sales and lead time for replenishment. For instance, if it takes 10 days to receive Item A from a purchase order, and you sell 1 unit per day, your reorder point might be 60 (50 safety stock + 10 units for the lead time), but your preferred stock level could be 110 (60 reorder point + 50 units to cover the sales during the lead time). Remember, the Preferred Stock Level is the maximum stock level you aim to maintain, while the Safety Stock Level is the minimum stock level you want to always have on hand.