I understand the concept of inventory, but what exactly is safety stock? Is it stock that I carry or that my supplier carries?
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I understand the concept of inventory, but what exactly is safety stock? Is it stock that I carry or that my supplier carries?
25 Jul
10:09 am on July 25th, 2010
the term “safety stock” is just another way of saying i have extra inventory “in case i need it” – call it what you want, its extra inventory and dollars – so the best way to approach that is get your vendor to hold the “safety stock” in his warehouse for you – or better yet get him to consign inventory to you –
he puts inventory in your shop based on a forecasted usage you provide – at the end of each month you report your usage – he then invoices you for the amount used and you pay 30 days later