Safety stock is a term used by logisticians to describe a level of extra stock which is maintained to mitigate the risk of stockouts, which can be caused, for example, by shortfalls in raw material availability or uncertainty in forecasting supply and demand. Adequate safety stock levels permit business operations to proceed according to their plans.
Safety stock is a term used by logisticians to describe a level of extra stock which is maintained to mitigate the risk of stockouts, which can be caused, for example, by shortfalls in raw material availability or uncertainty in forecasting supply and demand. Adequate safety stock levels permit business operations to proceed according to their plans.
Source: Wikipedia "Safety stock" · CC BY-SA 4.0
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