What could safety stock also be referred to as?

Safety stock is best referred to as buffer stock because it serves the primary purpose of acting as a safeguard against uncertainties in demand and supply. This additional inventory helps to ensure that a company can continue to meet customer demands even when there are fluctuations or unexpected delays in inventory replenishment.

By maintaining buffer stock, organizations can mitigate the risk of stockouts, which can lead to lost sales and dissatisfied customers. This contrasts with the other terms; for instance, primary inventory generally refers to the regular stock used for day-to-day operations, excess stock implies an overage that may not be necessary or useful, and shortage stock indicates a deficiency in inventory that cannot meet demand, which is the opposite of the intended purpose of safety stock. Therefore, buffer stock is the most apt term, highlighting its role in providing a cushion against variability in the supply chain.