Safety stock optimization

{
  "id": "MLC-T-LOG-000201",
  "term": "Safety stock optimization",
  "field": "Logistics and supply chain",
  "definition": "The practice of determining the appropriate level of extra inventory held to mitigate the risk of stockouts due to unexpected demand fluctuations or supply disruptions. This involves balancing the cost of holding excess inventory against the cost of lost sales or production delays. Statistical methods and demand forecasting are used to calculate optimal safety stock levels.",
  "url": "https://mlchart.com/terminology/logistics/safety-stock-optimization/"
}