# Safety stock

*Last updated: 2026-06-22*

> Safety stock is a buffer quantity held on top of the calculated average inventory to absorb unexpected demand surges or supplier lead-time variability.

Safety stock is a buffer quantity held on top of the calculated average inventory to absorb unexpected demand surges or supplier lead-time variability. When a replenishment order is still in transit and demand suddenly spikes, this reserve prevents stockouts and keeps customer orders on track. Inventory planners face a clear trade-off: too much safety stock ties up working capital and drives up warehousing costs, while too little exposes the operation to stockouts and their knock-on effects – production stoppages or lost customers. The right level is determined by demand variability, lead-time variability, and the target service level. Safety stock is distinct from the reorder point, which triggers a new purchase order; safety stock sits below that threshold as a last-resort buffer.

**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 | 121 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Safety_stock |

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