safety stock
noun[U]
ukusPRODUCTION
thesmallextrasupplyofgoods,materials, etc. that acompanykeepsincasethedemandfor them isgreaterthan isexpected:
If wereducetheuncertaintyinplanning, wereducetheamountofsafetystockwe need.
Examplesofsafety stock
safety stock
By absorbing these variations,safetystockimproves the customer service level.
From
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Safetystockis held when there is uncertainty in demand, supply, or manufacturing yield; it serves as an insurance against stockouts.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Too littlesafetystockcan result in lost sales and, thus, a higher rate of customer turnover.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The goal of multi-echelon inventory optimization is to continually update and optimizesafetystocklevels across all of these echelons.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Safetystockis held to account for variability, either upstream in supplier lead time, or downstream in customer demand.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.In this case, thesafetystockis calculated considering the demand and supply variability risks during this period plus the replenishment lead time.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Traditional demand modeling methods suggestsafetystocklevels which fail to achieve these service levels.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The amount ofsafetystockan organization chooses to keep on hand can dramatically affect their business.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The less accurate the forecast, the moresafetystockis required to ensure a given level of service.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.In this case,safetystockis calculated considering the risk of only the replenishment lead time.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.