Safety stock is inventory held beyond ordinary requirements to buffer unexpected demand or delayed supply. It is distinct from stock intended to cover planned routine consumption.[1]
Match the buffer to uncertainty and the consequences of running out. An unreliable supplier may justify additional protection, but continually increasing stock does not fix the underlying supply problem. Reassess the decision when demand patterns or lead times change.
Content updated:
Sources
Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.