Files
markitect-main/examples/supply-chain-vsm/output/entities/safety-stock.md
tegwick 574bb11db6 feat(example): add supply-chain-vsm composition demo (S3.5)
Demonstrates infospace composition: the Wealth of Nations infospace is
used as a discipline, applying Smith's economic framework as a lens to
analyse modern supply chain management concepts.

New example: examples/supply-chain-vsm/
- infospace.yaml binding WoN as discipline (../infospace-with-history)
- 3 source documents: coordination mechanisms, capital & inventory,
  market structure (~400 words each, original content)
- supply-chain-entity-schema-v1.0.md with WoN Concept required section
- won-mapping-schema-v1.0.md with Conceptual Continuity rating
- artifacts/won-reference/core-entities.md — 12 curated WoN entities
  for injection as discipline context
- 8 hand-crafted entity files demonstrating LLM output format
- 3 mapping files with full rationale and VSM inheritance chains
- Viable: YES (5/5 thresholds)

Key mappings demonstrated:
  Demand Signal          → Effectual Demand        (Strong, S2)
  Vendor-Managed Inventory → Division of Labour    (Strong, S1/S2)
  Just-in-Time Inventory → Circulating Capital     (Strong, S1/S3)
  Bullwhip Effect        → Natural Price           (Moderate, S2)
  Platform Intermediary  → Merchant Capital        (Strong, S2/S4)
  Monopsony Power        → Combination of Masters  (Strong, S3*)

Platform fix: entity_parser.py now recognises ## Supply Chain Domain
as a domain alias for ## Economic Domain, enabling composed infospaces
to use their own domain section name.

Tutorial §13 rewritten with real commands, real output, and the full
mapping table from the demo.

Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
2026-02-23 00:08:51 +01:00

1.5 KiB

Safety Stock

Definition

Inventory held in excess of expected demand to buffer against supply and demand uncertainty. Safety stock represents capital deliberately kept unproductive — not expected to be consumed in normal operations — in order to preserve operational continuity when actual demand or supply deviates from forecast. The optimal safety stock level balances inventory holding cost against stockout cost.

Source

Capital and Inventory in Supply Chain Management, §Safety Stock and Reserve Capacity

Supply Chain Domain

Capital Management

VSM Assignment

S3 — Safety stock is a management-level capital allocation decision. The question of how much safety stock to hold is a resource management choice that trades off capital efficiency against operational resilience, made at the S3 (management/control) level.

WoN Concept

Accumulation of Stock — Smith describes the accumulation of stock as a prerequisite for productive activity: you cannot employ workers until you have stock to sustain them. Safety stock is a modern instantiation of this logic — productive continuity requires a buffer of stock to absorb variability, just as Smith's pre-capitalist household needed a reserve before it could specialise its labour. Both represent capital held in reserve against contingency rather than deployed in production.