EazyStock is an all-in-one inventory optimisation software that solves all your inventory problems.
This includes many features and solutions:
Fill in the form and see how EazyStock can solve your inventory problems today.
"*" indicates required fields
Safety stock (often called buffer stock) is the extra level of stock / inventory (raw materials or finished goods) carried by a company to reduce the risk of running out of stock due to supply or demand uncertainties.
It ensures you always have enough stock of all items for your customers – a crucial aspect of inventory management.
For more information, read our full blog on the Importance of safety stock in inventory management.
Importance of safety stock blogSafety Stock = (Maximum daily usage × Maximum lead time) − (Average daily usage × Average lead time)
There are 3 main formulas to calculating safety stock:
The above formula is the “Average/Max safety stock formula” and is a simple formula to calculate safety stock easily, but it can lose accuracy in real life scenarios where stock usage and lead times are dynamic and fluctuate easily.
For a more information on all the formulas to calculate safety stock, have a look at our How to calculate safety stock to save money blog. Or read our free eGuide on How to calculate safety stock.
Free eGuide – How to calculate safety stockVisit your local website for products and services specific to your country.
