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What is Safety Stock ?

“A quantity of stock planned to be in inventory to protect against fluctuation in demand or supply”

The formula of Supply Chain Excellence is the following:

Syensqo IS - Customer Support > 4. Safety stock > image2021-2-8_10-28-59.png

The Safety Stock is calculated by a formula, then adjusted (divided) using a matrix based in Variability/Usage.

1) Calculation of Safety Stock with the following 3 steps according to the formula opposite.

2) Adjust (divide) previous SS results by a number depending on its Usage & Variability:

Syensqo IS - Customer Support > 4. Safety stock > image2021-2-8_10-30-1.png