What is 'Safety stock' also known as?

Safety stock is commonly referred to as buffer stock. This term reflects its role in inventory management, where it serves as an additional quantity of inventory held to mitigate risks related to unexpected fluctuations in demand or supply chain disruptions. By maintaining buffer stock, businesses can ensure they have sufficient resources on hand to meet customer demand without interruption, helping to prevent stockouts and maintain smooth operations.

The use of the term "buffer" specifically highlights its function in providing a safeguard against variability in demand and supply, making it a key concept in inventory control and logistics. Consequently, calling safety stock buffer stock encapsulates its primary purpose within the framework of inventory management strategies.