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Safety Stock In Inventory Management

oboloo Glossary

Safety Stock In Inventory Management

Safety Stock in inventory management is a necessary reserve of items stocked to ensure that supply chain operations have enough stock on hand and can meet customer demand. It’s often referred to as buffer stock, since it works like a buffer between the customer and any unexpected delays in supply chain operations. As such, Safety Stock needs to be carefully evaluated and maintained in order to prevent any disruptions or outages in the production process. With Safety Stock, businesses can be confident they will have sufficient supply on hand even during times of increased customer demand.

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