Definition
Safety stock, also known as buffer stock or safety inventory, is a quantity of extra inventory held by a company as a precautionary measure to mitigate the risk of stockouts or delays in the supply chain. It serves as a cushion against unexpected fluctuations in demand, supply disruptions, lead time variability, or production issues, ensuring that adequate stock levels are maintained to meet customer demand and prevent disruptions to operations or customer service.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.