Safety stock
Buffer inventory held to absorb variability in demand and supply so normal swings don't cause a stockout.
Safety stock is the cushion between your reorder point and zero. It exists because both demand and lead time vary -- some weeks sell faster, some shipments arrive late -- and safety stock is what keeps those normal surprises from becoming stockouts.
Skuwell sizes safety stock from demand variability and lead-time reliability per SKU, balancing service level against carrying cost, and bakes it into reorder points. Use our safety stock calculator to see how service level and variability change the number.
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The stock level at which you should place a replenishment order so you don't run out before it arrives.
Read definition → Lead timeThe elapsed time between placing a purchase order and having the stock available to sell.
Read definition → Demand forecastingPredicting future sales for each SKU so you can buy the right quantity at the right time.
Read definition → StockoutRunning out of a sellable item, causing lost sales and -- on marketplaces -- ranking and account damage.
Read definition →See it working on a live system.
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