Meaning of the word "safety stock" in English

What does "safety stock" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

safety stock

US /ˈseɪf.ti ˌstɑːk/
UK /ˈseɪf.ti ˌstɑːk/
"safety stock" picture

Noun

1.

an additional quantity of an item held in inventory to reduce the risk of a stockout caused by uncertainties in supply and demand

Example:
We maintain a safety stock of critical components to prevent production delays.
Calculating the optimal safety stock level is crucial for inventory management.
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