Business Terms Glossary
Safety Stock
Definition of Safety Stock
Safety Stock refers to the amount of inventory that is invested in to accomodate fluctuations in supply and demand while still meeting customer needs.
Safety stock is an important investment to make in order to ensure a smooth supply chain. However, many experts believe that safety stock masks problems that should be eliminated or fixed, rather than using safety stock as a band-aid solution.
While it is true that safety stock is costly, it is often a necessary evil to avoid stockouts.
Safety Stock References On This Site
These Gaebler.com articles mention this glossary term:
- Kanbans - In the meantime, the employees will have the last box plus the safety stock of 3000 light bulbs...
- Safety Stock - Too much safety stock can result in high holding costs of inventory. In...
- Safety Stock - Too much safety stock can result in high holding costs of inventory. In...
- Kanbans - In the meantime, the employees will have the last box plus the safety stock of 3000 light bulbs...
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