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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

safety stock

see STOCK CONTROL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Before discussing any specific approach to tackling the task of setting policy for wholesale safety stocks, it's worth taking a moment to discuss analytics and modeling in general.
Buying levels were raised not only to support higher output requirements, but also to help boost safety stocks amid positive forecasts for future business activity.
"Manufacturers linked increases in both domestic and overseas demand to clients purchasing to build up safety stocks to mitigate potential Brexit disruption," IHS said.
But rather than being cause to celebrate, IHS Markit said the numbers reflect a build up of "safety stocks to mitigate potential Brexit disruption".
"Any positive impact for the sector is likely to be shortlived, however, as any gains in the near-term are reversed later in 2019 when safety stocks are eroded or become obsolete.
Pre-positioning essential material and safety stocks: Hurricanes can now be forecast in advance with much greater accuracy, giving companies more time to plan mitigation efforts.
So in order to avoid stock-out and to achieve higher target or service level it is necessary to decrease the uncertainty of the demand fluctuation with a more accurate forecasts or by increase of the safety stocks to cover the fluctuating demands [5].
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.