Benefits of Safety Stock

Safety stock is extra inventory that is prepared which must be stored as a safeguard to deal with uncertain demand volatility, safety stock must be carried out by every business, be it a trading or industrial company.
So safety stock has a very important role in a company, especially to reduce the risk of stock shortages when the demand for goods is high. In addition, safety stock also has several benefits, such as:
1. Prevent over stock which means there is no efficiency in inventory
2. Facilitate booking schedule
3. Determine the right amount of inventory.

To simply put, its more like keeping some for a rainy day. This is extremely important as a business owner. Especially in a situation where the products becomes hard to find.