What is amount of supplies used as a buffer while awaiting receipt of additional supplies is called?

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2026-04-14 00:40

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The amount of supplies used as a buffer while awaiting the receipt of additional supplies is called "safety stock." Safety stock acts as a safeguard against uncertainties in supply and demand, ensuring that operations can continue smoothly without interruptions. It helps to mitigate risks associated with delays or fluctuations in inventory levels.

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