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Safety Stock Inventory

oboloo Glossary

Safety Stock Inventory

Safety stock inventory is a buffer of extra inventory to protect against unforeseen disruptions in the supply chain. This type of inventory helps ensure that businesses have enough stock on hand to meet demand even when factors like shipping delays, shortages, or production defects occur. By having safety stock on hand, businesses can avoid costly stockouts and customer dissatisfaction. It’s a smart way to safeguard your business from unpredictable interruptions and maximize customer satisfaction.

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