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Get startedSafety stock
Buffer inventory held to absorb demand spikes and supplier delays.
Safety stock is the extra inventory you keep on hand to avoid stockouts when demand runs hot or a supplier is late. It's built into your reorder point. Too little and you stock out; too much and you tie up cash and storage.
Formula
Safety stock ≈ Avg daily sales × safety days of cover
Example: 20/day × 5 days of cover = 100 units of safety stock.
What a good result depends on
Sized to your demand variability and lead-time reliability.
Common mistakes
- Holding zero safety stock on volatile products.
- Over-buffering slow movers and tying up cash.