Safety stock or **safety stock is a term used in logistics to describe the extra level of stock held in warehouse to cope with variations in demand, supply or production. Safety stocks are generated to reduce uncertainties that occur in supply and demand.

Safety stock allows companies to meet customer demand even if the company encounters one of the following situations:.

Overall, it allows you to avoid stock breaks generated, either due to supplier delays, or due to unforeseen evolution of demand.

The calculation of safety stocks is based on the following elements:.