safety stock
Definition:
The minimum level of STOCK considered necessary to enable a firm to satisfy orders within acceptable delivery times. As stockholding ties up capital which could be used for other purposes, most firms keep this to a minimum and many have moved to 'JUST-IN-TIME' methods where stockholding is negligible and the producer or seller depends upon his supplier to deliver just before required use or resale.
Cross-References:
[stock]
[just-in-time (JIT)]
Links:
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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker], [1998].