What is Safety Stock? Safety stock or buffer stock is the additional quantity of an item above the desired quantity that is held in the on-hand inventory. Such extra inventory is held with the sole purpose of avoiding the risk of running out of stock. Safety stock serves as an insurance or a cushion for manufacturers
Inventory Management
What is Safety Stock?
- Published: October 10, 2020
What is ABC Analysis?
- Published: September 21, 2020
What is ABC Analysis? ABC analysis is the process of classifying the inventory into A, B and C classes based on their relative significance to business, either by their monetary value, utilization, carrying cost or any other factor. This allows leaders to allocate the company’s resources to maximize the efficiency. Class A: Very important for