Safety Stock Management

Safety stock management is a strategy used in inventory management to ensure that a business has enough extra stock on hand to meet unexpected demand or supply shortages. It acts as a buffer against uncertainties, such as sudden increases in sales or delays from suppliers. By determining the right amount of safety stock, businesses can prevent stockouts that might lead to lost sales, while also avoiding excess inventory that can tie up resources. Essentially, it's about finding the right balance to keep operations smooth and customers satisfied, even when surprises arise.