Wednesday 30 January 2019

Safety Stock - Safety Inventory

Safety stock is an additional quantity of an item held in inventory in order to reduce the risk that the item will be out of stock. Safety stock acts as a buffer in case the sales of an item are greater than planned and/or the supplier is unable to deliver additional units at the expected time.

Safety stock graph
Safety supplies in all situations there is a "safety stock" between placing an order for replacement supplies, acceptance of the goods on to the inventory. By Management Production time is usually referred to as delivery lead time.

After holding orders for replacement, fulfillment of orders of subscription must be satisfied the existing inventory. A request from a subscription typically fluctuate and cannot be predicted with precision unless there is a previous agreement and does not exceed the agreed requests together.


Safety stock here already violated.. When an order is done at the time the inventory of 300 units at a time then ordered goods inventory warehouse come still 160 units (i.e. 360-200), exactly the same with the amount of his large safety stock, which means safety stock is not violated.

Safety supplies by themselves there would be the risk that can't be avoid that existing supplies will be depleted completely before replacement service to come so handling cannot be filled properly. Because of the level of service, it should be preserved by creating a Safety stock which will accommodate every storage during lead time.

The notion of safety stock, namely the definition of a security inventory (safety stock) is the additional inventory held to protect or maintain the possibility of lack of materials (stock-out).

Planning the supply of raw materials which have been taken into account, but often the raw material inventory is insufficient because of frequent jump it up supplies production company that supplies or is experiencing broken or does not meet the standards industry to meet consumer demand.

Based on the above understanding, as an additional ingredient in the inventory has been prepared, then additional reincarnated raw is in addition can also be used to maintain the continuity of the work. With respect to the wisdom of the inventory control raw materials made by the company of UD. 

The ray, safety inventory (safety stock) need to be taken care of because:

  1. The possibility of a shortage of raw materials, due to the usage that is greater than the original estimates.
  2. The delay in the receipt of raw materials ordered.

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