Protect your inventory with safety stock

Determining appropriate stock levels is one of the most important and challenging tasks faced by inventory managers. If you carry too much, you’ll tie up working capital. Carry too little and you’ll risk potential stock-outs and unhappy customers.

There needs to be a balance between investing the right amount of capital in inventory and achieving service level targets (a measure of stock availability). One key challenge – and an important piece in the puzzle – is calculating safety stock levels.

When demand for inventory items is consistent and lead times are reliable, it’s fairly easy to set safety stock levels. But, when demand and supply fluctuate, many inventory planners find it much tougher to calculate safety stock accurately. All too often they choose to use simple safety stock formulas, which are insufficient to deal with the supply and demand challenges they face.

This is where an inventory optimization solution like EazyStock comes in! EazyStock takes the manual work out of calculating safety stock for each SKU by calculating and automatically updating safety stock levels.

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