safety stock

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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 ?
The center provides comprehensive, high-quality services to customers, allowing them to reduce the safety stocks of backup facilities and further lowering their costs.
in competitive business world, aggregate demand in supply chain, supply chain pull and push views and just in time, inventories and its impact on supply chain, safety stocks and service levels, purchasing
The wealth of supply chain research, coupled with the ideas embedded in STM, allows us to derive formulae for reorder levels, safety stocks, and total costs when informational lead times are greater than zero, and total costs when informational lead time is zero.
The requirement for naval convoy operations will delay the arrival of materiel as ships are marshaled into protective convoys, thus increasing the requirement for safety stocks to account for the delays caused by convoy operations.
By walking around the periodic review model during our analysis, we will present the relations between the fluctuation of demand and the safety stocks, and we will define the formula for the quantification of the safety stock.
Understandably, 'production adj for FG InventoryS1' is the rate at which FG safety stocks are replenished.
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.
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.
JDA said that Associated Food Stores has deployed its Advanced Warehouse Replenishment by E3 solution in order to consider forecasted demand, current inventory levels and safety stocks.
This avoids having every dealer in a region carry safety stocks.
adjust system-generated demand forecasts, safety stocks and lead times;
Materials managers have had little choice but to hedge by increasing safety stocks.