What is the purpose of maintaining safety stock?

Maintaining safety stock primarily serves the purpose of preventing stockouts or shortfalls. Safety stock acts as a buffer against uncertainties in demand and supply, such as unexpected increases in customer orders or delays in supplier delivery times. By having this extra inventory, organizations can better ensure that they meet customer demand consistently and avoid the negative impact of not having products available for sale. This proactive approach helps in maintaining customer satisfaction and can lead to an improved competitive position in the market.

The other options do not align with the principal intention of safety stock. Increasing inventory costs is not a goal; rather, minimizing costs while ensuring availability is the focus. Enhancing product variety is unrelated, as safety stock pertains to existing products rather than expanding the range. Simplifying supply chain operations may be a benefit in some contexts, but safety stock's primary role is to mitigate the risks associated with inventory availability.