May 2022 Safety Stock in Supply Planning
SummaryManaging safety stock whitepaper is updated for Release
Safety stock is inventory that is carried to prevent stock outs. Stock outs stem from factors, such as fluctuating customer demand, forecast inaccuracy, and variability in lead times for raw materials or manufacturing.
Maintaining safety stock supplies enables you to hedge supplies to meet unexpected demands and improve customer satisfaction. Adequate safety stock levels enable your business operations to proceed according to plan.