Answer:
Safety Stock.
Explanation:
Safety Stock is held to respond to the uncertainties in demand and supply levels because it is an additional amount of a product or material which is generally held in an inventory to mitigate or lessen the risk that a product or material will become out of
stock.
In Business management, the safety stock can be calculated using the following formula;
Safety stock = (Md * Ml) - (Ad * Al)
Where;
Md = maximum daily usage.
Ml = maximum lead time in days.
Ad = average daily usage.
Al = average lead time in days.
