How to Calculate Safety Stock Levels for Inventory Management

eBook - How to Calculate Safety Stock for Inventory Management

Determining appropriate inventory levels is a challenging task. If you carry too much stock you tie up working capital. Too little and you face potential stockouts and unhappy customers.

Safety Stock, also called buffer stock, is the layer of inventory kept to prevent stockouts and back orders.

In this eBook we show you how to calculate safety stock - from the most basic safety stock formulas to the most sophisticated and accurate.

We'll also provide strategies for finding the right balance between inventory costs and customer service levels.

Topics include:

  1. The basics of safety stock management
  2. The importance of accurate safety stock levels
  3. Methods for calculating safety stock & examples

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