Safety stock

Safety stock is extra inventory held above your forecasted demand so that unexpected demand surges or supplier delays don’t result in stockouts. In Stockie, safety stock is one of the key forecasting inputs you configure to balance between service reliability and holding costs.

What safety stock does

• Acts as a buffer against variability in demand or supply.
• Prevents stockouts when sales exceed expectations or orders are delayed.
• Helps sustain service levels without frequent emergency orders.

How it is used in forecasting

Safety stock is added to demand forecasts before calculating reorder points - the point where Stockie recommends placing a new order.

Example

If demand unexpectedly spikes or a shipment is late, your safety stock ensures you still have inventory to fulfill orders. It’s like insurance inventory - it costs money to hold, but protects against lost sales.