Safety stock is intended to?

Safety stock serves as a critical buffer to prevent stockouts, particularly in environments where demand fluctuations are unpredictable or lead times from suppliers may vary. By maintaining a reserve of inventory that is not included in regular stock levels, businesses can meet customer demand even when actual sales exceed forecasts or when unexpected delays occur in supply replenishment. This helps ensure that operations run smoothly and customer satisfaction remains high.

While enhancing inventory levels could support increased sales or tracking inventory performance serves different functions, the primary purpose of safety stock is specifically to mitigate the risk of running out of stock, thereby safeguarding against potential loss of sales and maintaining service levels. Reducing production costs may be a goal in other aspects of inventory management, but safety stock specifically focuses on reliability and availability rather than cost reduction.