Glossary
Safety stock
Safety stock is an extra quantity you keep above the expected need to cover a jump in demand or a late supplier.
What it means for a shop owner
It is insurance against running out, but it ties up money, so do not overdo it. Raise it for the most important items and the slowest to arrive. It is added to the reorder point.
A worked example
The need over the lead time is 50 pieces and you add 20 as a buffer. The reorder point is 70 pieces.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes