Term · Business & Market
Safety stock
Inventory held above forecast demand to absorb variability in demand or supply. Sizing it trades working capital against the risk of a line-down event at the customer.
- Also known as
- Buffer stock, Strategic inventory
- Type
- Term
- Domain
- Business & Market, Supply chain
Notes
Post-2021 many OEMs permanently raised safety stock targets for semiconductors, structurally lifting channel inventory.
Related terms
Part of the Business & Market glossary, with every term in the topic and the lifecycles, tools and standards that use them.
Where it appears on the Hub
Used on 3 pages of the Hub. In each group, the pages that mention it most come first.
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