Inventory & Manufacturing
Safety Stock
Buffer inventory held to mitigate demand variability or supply lead-time variability.
What it means
Safety stock is the cushion above expected demand during lead time. Higher safety stock means lower stock-out risk but higher carrying cost. Calculated using statistical methods based on service-level target and demand variability.
How Easedesk handles Safety Stock
Easedesk supports per-SKU safety stock and can recommend levels based on demand history, lead time and target service level.
Related terms
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