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Safety Stock is the quantity of stock held to satisfy unexpectedly high requirements in the stocking-up period.The purpose of the safety stock is to prevent a material shortage from occurring. In order to determine the safety stock level, you must first specify the risk of a material shortage and also the desired service level.
this is extra stock that is maintained to mitigate risk of stockouts (shortfall in raw material or packaging) due to uncertainties in supply and demand.
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