Säkerhetsstock

Säkerhetsstock, a Swedish term, translates to "safety stock" in English. It represents an extra quantity of inventory held by a company to mitigate the risk of stockouts. This stockout risk can arise due to various factors, including unexpected surges in demand, delays in supplier deliveries, or unforeseen production issues. The primary purpose of maintaining säkerhetsstock is to ensure that customer orders can still be fulfilled even when normal inventory levels are depleted.

The calculation of säkerhetsstock typically involves considering factors such as demand variability, lead time variability, and the desired service level. A higher desired service level, meaning a lower probability of a stockout, will generally require a larger amount of säkerhetsstock. Conversely, a company willing to accept a higher risk of stockouts might maintain a lower level of safety stock.

Effective management of säkerhetsstock is crucial for optimizing inventory costs. Holding too much säkerhetsstock can lead to increased carrying costs, such as warehousing, insurance, and potential obsolescence. On the other hand, insufficient säkerhetsstock can result in lost sales, damaged customer relationships, and production disruptions. Companies often use inventory management software and statistical models to determine optimal levels of säkerhetsstock for different products. The goal is to strike a balance between the cost of holding inventory and the cost of potential stockouts.