# Safety Stock

*Last updated: 2026-06-22*

> Safety stock is the inventory held above projected demand to buffer against unexpected fluctuations in consumption and supply-side delays.

Safety stock is the inventory held above projected demand to buffer against unexpected fluctuations in consumption and supply-side delays. Its core purpose is to prevent stockouts – the depletion of on-hand inventory – which can trigger production stoppages or missed deliveries. Supply chain and inventory managers calculate the optimal safety stock level based on demand variability, lead-time variability, and the target service level. A higher safety stock reduces stockout risk but raises holding costs and ties up working capital. In international logistics, where lead times are longer and supply chain disruptions more frequent than in domestic distribution, rigorous safety stock calculation is a critical planning discipline.

**Source:** [https://en.wikipedia.org/wiki/Safety_stock](https://en.wikipedia.org/wiki/Safety_stock)

## Quick Facts

| Property | Value |
|---|---|
| Term | Safety Stock |
| Language | EN |
| Word count | 106 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Safety_stock |

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