Turvavaramistus

Turvavaramistus, a Finnish term, translates to "security stock" or "safety stock" in English. It refers to a level of inventory that a company holds beyond its expected demand to mitigate the risk of stockouts. This extra inventory is kept to buffer against uncertainties in supply and demand, such as unexpected surges in customer orders, delays in production, or disruptions in the supply chain. The primary goal of turvavaramistus is to ensure continuous availability of products, thereby maintaining customer satisfaction and preventing lost sales.

Determining the optimal level of turvavaramistus involves a careful balance. Holding too much safety stock can lead to increased carrying costs, including warehousing expenses, insurance, and potential obsolescence. Conversely, insufficient safety stock can result in unmet demand, leading to customer dissatisfaction, damaged reputation, and lost revenue. Various factors influence the calculation, including demand variability, lead time variability, service level targets, and the cost of stockouts versus the cost of holding inventory. Companies often use statistical methods and inventory management software to calculate and manage their turvavaramistus effectively. The implementation of turvavaramistus is a key component of robust supply chain management strategies.