What does safety stock mean?
Definitions for safety stock
safety stock
This dictionary definitions page includes all the possible meanings, example usage and translations of the word safety stock.
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Wiktionary
safety stocknoun
Additional inventory planned to buffer against the variability in supply and demand plans, that could otherwise result in inventory shortages.
Wikidata
Safety stock
Safety stock is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand. Adequate safety stock levels permit business operations to proceed according to their plans. Safety stock is held when there is uncertainty in the demand level or lead time for the product; it serves as an insurance against stockouts. With a new product, safety stock can be utilized as a strategic tool until the company can judge how accurate their forecast is after the first few years, especially when used with a material requirements planning worksheet. The less accurate the forecast, the more safety stock is required. With a material requirements planning worksheet a company can judge how much they will need to produce to meet their forecasted sales demand without relying on safety stock. However, a common strategy is to try and reduce the level of safety stock to help keep inventory costs low once the product demand becomes more predictable. This can be extremely important for companies with a smaller financial cushion or those trying to run on lean manufacturing, which is aimed towards eliminating waste throughout the production process.
Numerology
Chaldean Numerology
The numerical value of safety stock in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of safety stock in Pythagorean Numerology is: 9
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"safety stock." Definitions.net. STANDS4 LLC, 2025. Web. 18 Jan. 2025. <https://www.definitions.net/definition/safety+stock>.
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