Safety stock is a term utilized by logisticians to portray a level of additional stock that is kept up to moderate danger of stockouts because of vulnerabilities in free market activity. Satisfactory safety stock levels allow business activities to continue as indicated by their plans. Safety stock is held when there is vulnerability sought after, supply, or assembling yield; it fills in as a protection against stockouts.
Safety stock is an extra amount of a thing held in the stock keeping in mind the end goal to diminish the hazard that the thing will be out of stock, safety stock go about as a support stock in the event that the deals are more noteworthy than arranged or potentially the provider can't convey the extra units at the normal time.
How to ascertain safety stock level?
The calculation is simple on the off chance that you have dependable buy and deals arrange history accessible.
Safety Stock = (Maximum Every day Usage x Maximum Lead Time Days) - (Average Day by day Usage x Average Lead Time Days)
