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Safety stock

Supply chain flashcard on Safety stock, which is an inventory optimization method used to determine the extra inventory needed beyond expected demand to meet service level target. It critiques the use of standard safety stock formulas, suggesting they are inadequate due to variability in demand and competition for resources. The illustration depicts a young couple with multiple packages of diapers and husband taking one more package off the shelf while saying they need more safety stock.

Artist: Marina Besfamilnaya

Learn more in the entry Safety stock of the Lokad knowledgebase.