Safety Stock
Safety stock acts as a silent buffer in inventory management: unlike the reorder point, which triggers a purchase order, safety stock is held in reserve specifically to absorb supplier lead time variability, demand fluctuations, and forecast errors without disrupting regular operations.
Source: https://www.investopedia.com/terms/s/safety-stock.asp
Next steps
Matching tools and partners
Related Terms
You might also be interested in these terms
Incoterms 2020 Simulator: Who bears costs & risk?
Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.
Logistics knowledge straight to your inbox
Free · No password · Never a paywall. Weekly top news and facts from logistics.
Community Questions & Answers
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.