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Safety Stock
Safety stock is an additional quantity of an item held in inventory in order to reduce the risk that the item will be out of stock. Safety stock acts as a buffer in case the sales of an item are greater than planned and/or the supplier is unable to deliver additional units at the expected time.
Safety Lead Time
safety lead time is a way to represent your safety stock as a number of days demand. Safety lead time can be beneficial when you want to “pad” your lead-time to compensate for supplier variability, transportation variability, or internal process variability.
Safety stock is a buffer of stock above and beyond that needed to satisfy the gross requirements.
Safety lead time is a procedure whereby shop orders or purchase orders are released and scheduled to arrive one or more periods before necessary to satisfy the gross requirements.
Safety stock can be incorporated into MRP time-phased records. The result is that the projected available balance doesn't fall below the safety stock level instead of reaching zero.
To incorporate safety lead time, orders are issued (planned) earlier and are scheduled (planned) to be received into inventory before the time that the MRP logic would indicate as necessary.
These are "buffers" used in supplu chain to ensure proper stock levels of necessary items in all situations and under any circumstances.
The safety stock buffer is an additional quantity in numbers or percentages to be considered when ordering specific quantities of these items. I really do NOT agree with sppecifying a certain number or percentage across the whole thing, because this varies per item, per industry and per specific of the situation.
The safety lead time is a buffer to be considered in the time it takes from placing the purchase order till the time of delivery of the purchased items. This buffer may cater for unknow/unpredictible variations in the supply chain and its associated logistics. Again, I do not agree with the approach of assigning a fixed number or percentage for this safetly lead time buffer ... because ... again .. it varies from case to case !
You need to understand the supply chain model specifics in your own situation to be able to assign these buffers efficiently and effectively
30% from the carrently Qty
I agree with Mr. Mohammad Tohamy Hussein Hussein and Mr. Mohammad Iqbal Abubaker
Contigent level for emergencies and same for time which is critciality
Safety Stock is an excess material that is maintained to protect against demand uncertainty and to prevent stock out
Safety lead time is another buffer in MRP involves establishing:
1- A planner order date that is ealier than when really needed
2- A planned order release date that is offset by normal lead time.
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.
Safety Stock = (Maximum Daily Usage − Average Daily Usage) × Lead Time
Lead time is the time which supplier takes in ordering the items
Safety Stock is nothing but the minimum stock that needs to be maintained. Safety Stock is nothing but [Re order Level - (Normal Consumption of the resource x Normal re order period)]
Safety stock is the level of inventory of Specific SKU where another order is being placed based on the forecast.
Safety lead time, is the time which started from the time an order is being placed until it's received and the stock available should cover this time.
for this reason when we do comparison between vendors we must consider not only the price, we should look at the lead time and quality.
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