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What is the difference between safety stock and reorder point?

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Answer:

Safety stock is the cushion held above expected demand. The reorder point is the stock level that triggers a new order, usually expected demand during lead time plus safety stock. One tells you how much cushion exists, the other tells you when to replenish. For low-value, predictable items (packaging, labels), teams often skip forecasting entirely and just run a reorder point: when stock hits the threshold, reorder.

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