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How to calculate safety stock for inventory management

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October 27, 2023
Kate Granger
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Working out how much stock to carry is a challenging task. If you carry too much, you tie up working capital. Too little, and you face potential stockouts and unhappy customers.

Safety stock is the extra layer of inventory kept to help deal with this problem.

In this guide we show you how to calculate safety stock – from basic safety stock formulas to the most sophisticated and accurate.

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