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welcome back to made simple today were going to be talking about safety stock but before we begin like always make sure you subscribe and smash that like button it would really help me out a lot in our last video we talked about eoq or economic order quantity now were going to be talking about safety stock all related to kind of inventory management so safety stock is basically the inventory you want to have on hand to avoid stock outs because of demand increases or demand jumps or something like that so its basically just the amount of inventory amount of product you want to have at all times in order to avoid stock out costs and and things like that and so this is also another pretty simple formula you really only need to know three things and that first first thing is you need to know the lead time specifically the lead time in days and the lead time is basically um the amount of days in this case it takes you to from when you order the product to when you receive the product so