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Science

Supply Chain Glossary

Safety Stock

    Safety Stock


    Safety Stock:Safety stock is a term used in inventory management that refers to a buffer of extra inventory that is kept on hand in order to avoid stock-outs. Stock-outs can be very costly for businesses, as they can lead to lost sales and unhappy customers. By keeping safety stock on hand, businesses can ensure that they always have the products their customers need, even if there is an unexpected spike in demand.

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