Safety stock simply is inventory that is carried to prevent stockouts. This is part 1 in a series where I present an experimental new safety stock formula.That leaves you with a safety stock of 1,262.8 (or 11.64). This guide covers various safety stock formulas, including the AverageMax and statistical methods, to help you determine optimal safety levels. Keep track of cash flowing in and out of your business every day with these formulas that all smallbusiness owners should know. A friend of mine sent me this formula sheet for AS and A Level business, so I decided to help yall out too. You can find it here. Here's how we look up the price it's a formula in Excel called index so equals index and it's going to want the row number and the column number. "Cash is king" is a slang term reflecting the belief that money (cash) is more valuable than any other form of investment tools, such as stocks or bonds. Safety stock is inventory that is carried to protect against forecast errors, as well as fluctuations in demand or supply.