Safety Stock
Safety stock is a built-in buffer above your expected demand. It protects against two things: demand arriving faster than usual, and suppliers taking longer than their stated lead time.
Key takeaway: Safety stock is a built-in buffer above your expected demand. It protects against two things: demand arriving faster than usual, and suppliers taking longer than their stated lead time.
Safety stock is a built-in buffer above your expected demand. It protects against two things: demand arriving faster than usual, and suppliers taking longer than their stated lead time.
A higher service level (set in Settings → Service Level) gives you a larger safety stock and a lower chance of a stockout, but it means carrying more inventory. A 95% service level is the recommended starting point for most stores.
How safety stock interacts with the reorder point
Safety stock is added on top of the demand-during-lead-time figure to produce the reorder point. If you raise service level from 95% to 99%, your safety stock roughly doubles for the same SKU — so cash tied up in stock rises sharply at the very top of the curve.
Frequently asked questions
What is Safety Stock in Forthcast?
Safety stock is a built-in buffer above your expected demand. It protects against two things: demand arriving faster than usual, and suppliers taking longer than their stated lead time.
Related glossary terms
More in Replenishment
Safety Stock — live in Forthcast
Tune lead times, service level and buffers from inside Forthcast — every reorder recalculates instantly.