Safety Stock
Safety stock is extra inventory held to absorb uncertain demand or supply. It is a planning assumption, not a guarantee against every stockout.
A worked example
A practical example to make the concept clear.
| Step | Illustrative record and result |
|---|---|
| Starting record | A 4-day lead time and demand of 5 units per day give expected use of 20 units. |
| Change or calculation | The business chooses an example 10-unit buffer for possible delay: starting stock is 30 units. |
| Meaning and exception | A 2-day delay uses the 10-unit buffer at this demand rate. A longer delay can still cause a stockout; the buffer is not a guarantee. |
Why it matters
Measure lead-time and demand variation before choosing a level. Compare carrying cost with service risk, then revisit it as conditions change. No Datrylo savings figure is inferred from this concept.
Make it practical
Which variability and service target justify the proposed buffer? Test the answer with the exact release and application package under consideration. Explore Datrylo applications.