Safety Stock is a key component of effective inventory management. It’s the extra stock that businesses keep on hand to protect against unpredictable supply or demand fluctuations. The Safety Stock Formula Inventory is a mathematical formula used to calculate the optimal level of safety stock to maintain in an inventory system. This formula takes into account factors such as reorder thresholds, lead times, and forecast accuracy to determine the optimal safety stock level for a given inventory item. With the right levels of Safety Stock in place, businesses can stay one step ahead of any potential shortages – ensuring customer satisfaction and keeping operations running smoothly.