Benefits of Safety Stock

Suba

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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.
 

eldavis

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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.
 
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