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What is the difference between safety stock and minimum stock?

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تم إضافة السؤال من قبل Azam Djurabaev , Business Consultant , Compass Consulting
تاريخ النشر: 2015/03/12
Wasi Rahman Sheikh
من قبل Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Minimum level or safety stock level is the level of inventory, below which the stock of materials should not be fall. If the stock goes below minimum level, there is a possibility that the production may be interrupted due to shortage of materials. In other words, the minimum level represents the minimum quantity of the stock that should be held at all times.

Mohamed Awad
من قبل Mohamed Awad , Procurement Manager , Awok.com

Minimum stock is an indicator for reordering or any kind of the purchasing acting based on the company strategy and movement .

Safety stock is the stock held by a company in excess of its requirement for the lead time. Companies hold safety stock to guard against stock-out.

Maged Mohsen
من قبل Maged Mohsen , Processing manager , L'Oreal cosmetics industry

the minimum stock : is the stock that we start consume from you reorder the item again (it should equal to the lead time )

the safety stock : is the stock that keep you in the safe side if you have any delay in the delivery

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