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Home / Key Terms / How Safety Stock works

How Safety Stock works

Safety Stock is extra inventory, built up in days, that is maintained to avoid a stock out.

Where can you find this:

  • Product Details screen
  • Product History screen

Note: If set up as a Daily Replenishment product the Safety Stock options will not be shown. The K3S system handles that area differently.  

Safety Stock is system generated based on the level of deviation for the specific product. For example, if a product has a high deviation, meaning it is not very predictable, Safety Stock would be added for that product. As the product becomes more stable and the deviation drops, we will lower the Safety Stock.

 

If you click on the Safety Stock Analyzer, you will see the twelve different calculations, in four different categories, for a product’s Safety Stock.  This allows you to see why the Safety Stock is at its current level.

 

For more detailed information on Safety Stock click here.

 

Article last revised on 9/6/18

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King III Solutions (K3S) has been working with wholesalers and retailers since 1990 to help them better manage their inventory through smarter replenishment.  Since our founding, we have strongly believed that the key to effective inventory replenishment lies in a combination of tools, techniques, and customer education.  For that reason, the team at King III Solutions places tremendous emphasis on the continuous education and support of our customers to ensure that we constantly deliver the best tools available, but more importantly that our customers know how to use them properly. For more information, visit K3S.com

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