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Safety Stock

   Also found in: Acronyms, Wikipedia 0.03 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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Engine Safety Stock: An Opportunity to Avoid Over-Sparing Engines Safety stock is a term used by inventory specialists to describe a level of extra stock that is maintained below the cycle stock to buffer against stock outs.
Take a look at where you set your safety stock levels.
There is just not the money available to have safety stock, which is something that was pretty typical when the cash flow was not as tight as it is today," he says.
 
 
 
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