What is safety stock and how is it calculated?

Safety stock can be seen as a buffer stock for unexpected events such as demand spikes or supply delays. The calculation of safety stock is formulation of a quantity that allows you to still perform in the “worst case scenario” situation. It works on the principle of stock out risk mitigation.

How Zapro can help: Zapro keeps an eye on your lead time, which is a major factor in safety stock inventory management calculations.

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