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hi guys Ian Johnson from driving success calm today were going to talk about calculating a safety stock and in this case were talking about determining a minimum inventory count in order to protect your company against the high cost of an inventory stock and when you measure the cost of an inventory stock out youre talking about lost sales lost gross profit lost customers and lost market share okay so a safety stock is most often associated with min/max however it also applies to JIT which is why I put it in parenthesis because even in just-in-time supply chains you need a little bit of just in case inventory okay so Im going to go over these four steps in terms of defining your punishment time the daily consumption in terms of your sales to your customers safety stock and your actual delivery to your customers once you generate sale okay but before we get started on these four points I just wanted to say that there are a lot of calculations out there there there are a lot of very