Buffer policies and safety stock

Safety stock logic, service levels, and the Flowlity Min/Max corridor.

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 — 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.

Default vs product-level overrides

Buffer policy defaults are set at the site level in the Buffer Policy 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 > Inventory strategy tab and set custom buffer parameters. Product-level overrides take precedence over site-level defaults.

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).

Related pages

• Inventory strategies — The five strategies and when to use each.

• Configure your inventory strategy — Step-by-step guide including buffer policy setup.

• Buffer Policy — Where site-level defaults are configured.

• Products — Where product-level overrides are set.

• Planning — Where the Flowlity Min/Max corridor is visible.