When it comes to stocking inventory and meeting customer demand, safety stock calculations are an essential tool. A safety stock is a minimum level of inventory kept beyond forecasted demand in order to minimize or mitigate the risk of not being able to meet that demand. The goal of a safety stock calculation is to determine how much extra inventory should be kept on-hand in order to ensure adequate supply. This involves analyzing factors such as lead times, service levels, supplier reliability, and demand variability in order to accurately determine the optimal amount of safety stock to keep on hand. By understanding how to properly calculate safety stock, businesses can make sure they have enough inventory to fulfill customer demand without experiencing excessive expenses associated with carrying too much inventory.