Business Pitch Dictionary by pitch.dog
Inventory, demand & supply planning · Core

Safety stock

Also called: buffer stock

ELI5

Extra inventory held to protect against uncertainty in demand or supply.

Used in conversation

“Compare safety stock with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Safety stock” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.