Safety stock is the minimum level of inventory you want to keep on hand to ensure you can meet customer demand, even during demand spikes or supply delays.
Your stock for a product or material should ideally never drop below this level.
Why safety stock matters
Prevents stockouts that can delay deliveries.
Acts as a trigger for creating purchase orders (POs) or manufacturing orders (MOs).
Accounts for lead times, ensuring you reorder or produce before hitting zero stock.
Tip: In a Make-to-Order (MTO) model, product safety stock is often set to 0, but in a Make-to-Stock (MTS) model, safety stock is essential for maintaining optimal levels. In both cases, you can set safety stock for materials.
How safety stock works in Katana
If Calculated stock is negative, you should create a PO or MO for that item.
Inventory levels below the optimal amount are highlighted in red.
POs and MOs are not created automatically — you’ll need to create them manually.
Safety stock can be set per product or material directly in the Stock screen.
The Safety stock and Calculated stock columns appear only when filtering by a specific location (not “All locations”).
Risks of too much safety stock
Holding more inventory than needed can lead to:
Higher storage costs (e.g., warehouse rental).
Additional labor costs for stock handling.
Risk of stock expiring or becoming obsolete.
Reduced cash flow due to tied-up capital.
Aim to balance having enough stock to cover lead times without overstocking.
Bottom line: Safety stock is a critical tool for keeping your inventory healthy — just enough to handle surprises, but not so much that it costs you money.
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