Safety stock

What is safety stock?

It is important for warehouses and production facilities to always have sufficient goods and production equipment in stock so that there are no standstill, delays or production interruptions. Safety inventory is the amount of inventory that exceeds normal requirements to compensate for unexpected fluctuations in demand, delivery delays, or other unforeseen events.

What is the difference between reporting stock and safety stock?

The reported inventory and the safety stock are both concepts from warehouse management, which, however, fulfill different purposes and functions.

1. Reporting inventory
   The reported inventory is the quantity of goods and goods in the warehouse that, when reached, a new order is triggered. This is to ensure that inventory is replenished in good time before it is used up.
   
   
2. Safety stock
   Safety inventory is an additional quantity of goods or goods that is kept above the reported inventory in order to cushion unexpected fluctuations in demand or delivery delays.