## Safety Stock vs Minimum Stock — Are They the Same?

Both terms are often used interchangeably in problems, but conceptually they are different:

Safety Stock	Minimum Stock
The actual stock the company maintains to prevent a stock-out.	The benchmark / target stock level the company should maintain to prevent a stock-out.
Real cushion held in storage.	Computed reference level.

### Practical Rule

If a question gives both Safety Stock AND Minimum Stock separately → treat them as distinct and use each where applicable.
If only one is given → treat Minimum Stock = Safety Stock.

Worked example

### Example 1

Question gives Safety Stock = 150 units only.

→ Treat Minimum Stock = 150 units in all formulas.

### Example 2

Question gives Safety Stock = 150 units AND Minimum Stock = 200 units separately.

→ Use 150 for safety-stock-based formulas (e.g., ROL Formula 2) and 200 wherever minimum stock is required.

⚠️ Common exam mistakes

Reference:

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