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Calculating safety stock is simple and requires only basic data on daily product usage and lead time for orders. With this information, you can use a straightforward formula to determine the recommended safety stock level for any product. The video also covers reorder points and emphasizes the importance of safety stock as a buffer against supply chain delays. It explains when safety stock is beneficial and when it might not be, providing clarity on key definitions. Safety stock serves as a safeguard for your business, ensuring stability in case of unexpected events, ideally never being used in normal operations.
