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What is the difference between safety stock and buffer stock ?

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Question added by Nitin Choudhary , Assistant Manager - Planning & Inventory Management , Green Planet Industries
Date Posted: 2016/05/19
Sidrah Nadeem
by Sidrah Nadeem , Global Marketing Manager , Hill & Knowlton

I totally agree with Mr.Georgi's answer to this question. Thank you for the opportunity to learn.

Kanagaraj kumarasamy
by Kanagaraj kumarasamy , Supply Chain Lead , AquaChemie

Safety stock: Stock that is maintained to mitigate risk of stockouts or (shortfall in raw material or finished goods) due to uncertainties in supply and demand.

 

Buffer stock: Stock that is maintained until replenishment of next stock which is in transit or make to order.

Sathish Prabhu.V
by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Safety stock or buffer stock are the additional inventory kept to meet the fluctuation in demand, breakdowns, supplier issues or other situational issues.

Shameer Nazir Madari
by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

There is no difference between Safety stock and Buffer Stock

Safety/Buffer stock is excess inventory that acts as a buffer between forecasted and actual demand levels. This inventory is maintained so that a company has sufficient units on hand to meet unexpected customer and production demand.

The safety stock formula is as follows:

(Maximum daily usage - Average daily usage) x Lead time = Safety stock

Safety stock does not just involve finished goods; it can also be applied to raw materials, to guard against delays in the delivery of materials from suppliers.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Safety stock (also called buffer stock) is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts (shortfall in raw material or packaging) due to uncertainties in supply and demand

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Safety and limit is the limit that must not be less than, the stock of a particular item in normal circumstances, and called this level the real minimum and this represents a reduction reserve quantity which established reserves to cope with the changing circumstances and uncertain or emergency

And it can be calculated explained below:

Real minimum = maximum inventory - economic quantity to buy

Minimum = true level of demand re - supply amount

Minimum real = Minimum theoretical + or the amount of emergency reserves

The maximum amount of emergency stocks can keep inventory from a single class. And any increase this limit is an increase in inventory. The objective of establishing the upper limit is to ensure that disabled the money in the store varieties may not be used in a timely manner, and the upper limit of the reserves calculated according to the following equation:

Safety stock & Buffer stock are the same.  But there is a difference between Safety Stock & Reserve Stock.

Safety stock is the variation in demand during lead time (LT).

Reserve stock is the average demand during delivery delays.

SS = Z(std. dev. in demand during LT) where Z= std. normal statistic value for a given service level.

RS = (Average demand during a period) x (Max. delay) x (Probability of max. delay)

I apologize for the answer I leave the answer to the specialists the experts in this the field that's not my area.

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