# Buffer policies and safety stock

A buffer policy defines the safety stock parameters applied to a product. It determines how much extra inventory you hold to protect against demand variability and supply uncertainty. Buffer policies work hand-in-hand with [inventory strategies](/concepts/inventory-strategies.md) — each strategy type has its own set of buffer parameters.

### How buffer policies work

When Flowlity plans supply for a product, it uses the buffer policy to compute a safety stock level. This level appears in the Planning module as the **Flowlity Min** line on the chart. Together with **Flowlity Max**, it forms the optimal stock corridor — the band within which your stock should stay to balance service and cost.

* **Stock below Flowlity Min** — Risk of stockout. The Planning chart shows this in red.
* **Stock within the corridor** — Healthy range. Shown in green.
* **Stock above Flowlity Max** — Overstock situation, tying up working capital.

### Parameters by strategy

* **MTS Flowlity AI** — You set a target **service level** (e.g. 95 %). Flowlity uses probabilistic forecasting to calculate the safety stock needed to meet that service level, adapting dynamically as demand patterns change.
* **MTS My min** — You define a fixed **minimum stock** quantity. This value is used directly as the safety stock, regardless of demand.
* **MTS Reorder point** — You configure a **reorder point** and a **reorder quantity**. The reorder point acts as the buffer threshold.
* **MTS Reorder point + AI** — Same as standard reorder point, but Flowlity adjusts the reorder point dynamically using AI signals.
* **MTO** — No buffer. Orders are placed only against confirmed demand.

For strategies that use a dynamic Stock Min (such as MTS Flowlity AI), you can set a **minimum floor** — a threshold the Stock Min will never go below, whether expressed in quantity or days of coverage. This protects service levels while still benefiting from Flowlity's dynamic recommendations.

<figure><img src="/files/U3uN7hZEMkJCktBgmAui" alt=""><figcaption></figcaption></figure>

### Default vs product-level overrides

Buffer policy defaults are set at the site level in the [Buffer Policy](/settings/buffer-policy.md) settings page. These defaults apply to all products using a given strategy, unless a product has an explicit override.

To override the default for a specific product, go to [Products](/settings/products.md) > Inventory strategy tab and set custom buffer parameters. Product-level overrides take precedence over site-level defaults.

{% hint style="info" %}
Start with site-level defaults that match your general service-level targets, then override only the products that need special treatment (e.g. critical SKUs with a higher service level, or slow-movers with a lower target).
{% endhint %}

### Related pages

* [Inventory strategies](/concepts/inventory-strategies.md) — The five strategies and when to use each.
* [Configure your inventory strategy](/how-tos/configure-inventory-strategy.md) — Step-by-step guide including buffer policy setup.
* [Buffer Policy](/settings/buffer-policy.md) — Where site-level defaults are configured.
* [Products](/settings/products.md) — Where product-level overrides are set.
* [Planning](/modules/planning.md) — Where the Flowlity Min/Max corridor is visible.


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