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Safety Stock
(redirected from Safety Stocks)

    Also found in: Wikipedia 0.01 sec.
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.
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For the purpose of this case, stores such Home Depot will either be keeping safety stocks or anticipation inventory before and during the hurricane season.
Gone with the wind: Home Depot in Florida by Hung, Kuo-Ting; Hunt, Neil; Arslan, Hasan / Journal of the International Academy for Case Studies
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.
Taming the bullwhip by Lee, Hau L. / Journal of Supply Chain Management
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.
Challenges 21st century logistics by Air Force Journal of Logistics
 
 
 
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