safety stock

(redirected from Safety Stocks)
Also found in: Wikipedia.

Safety Stock

Inventory a company keeps in order to avoid running out. For example, a grocery store may buy more apples than it expects to sell in case there is a sudden uptick in demand or if the next delivery is delayed. Safety stock is considered a drain on a company's finances because it very likely will not sell. However, it may be necessary for the smooth function of a business. See also: Supply chain management.

safety stock

see STOCK CONTROL.
References in periodicals archive ?
In general, we can group inventory into four types, cycle inventory, pipeline inventory, safety stocks, and anticipation inventory, based on the reasons of holding these inventories (Ritzman & Krajewski, 2002, pp.
Now, as they see some signs of life in the market, these customers were placing orders that were a combination of just replenishing their safety stocks, and meeting their current demand.
Currently, the Air Force computes engine safety stocks in the Propulsion Requirements System (PRS), which computes a base safety-stock level (BSL) with a subcomponent including a war ready engine (WRE) target.
1, the latest version of ILOG's integrated planning and scheduling solution, featuring industry-first support for dynamic safety stocks.
This was partly because EU-based food manufacturers had purchased safety stocks of wheat and cereals after global grain harvests suffered from poor weather.
Materials managers have had little choice but to hedge by increasing safety stocks.
Accordingly, production planning required costly inventory safety stocks and backup teams of people to maintain quality control and to respond to the unanticipated and the misjudged.
Gas companies keep safety stocks much longer than absolutely necessary.
For example, it is a common practice in the defense manufacturing industry, while supplying both to the department of defense and the commercial market, to routinely combine safety stocks of the same part meant for different end users, thereby achieving lower overall operating costs.
Says Gligorich, "SYSPRO is enabling us to forecast and monitor customer usage and adjust safety stocks accordingly so we maintain less inventory while providing maximum customer enhancement.
The Air Force computes engine safety stocks in a system called the Propulsion Requirements System (PRS), which computes a base safety-stock level (BSL) with a subcomponent including a war ready engine (WRE) target.
In addition to nailing down the highest customer service levels at the lowest possible price, PowerChain Planner handles the daily strategy of setting safety stocks and calculating inventory targets at the most cost-effective buffer locations.