The safety stock formula explained with examples

Effective inventory management is critical for distributors to meet customer demand, prevent stockouts, and optimize supply chain efficiency. At the heart of your inventory strategy is safety stock levels like a library stocking multiple copies of favorite titles, so if several people borrow the same book at once, there's still a copy available for the next reader. A distributor stocks extra product as well, to maintain product availability and customer satisfaction but striking the right balance is key to success.