Purpose – The purpose of this study is to investigate how safety stock should be dimensioned for ingoing inventory based on factors in manufacturing electronic business with the vehicle industry as customer.

- Which factors are important to have in consideration when dimensioning safety stock for ingoing inventory in the electronic to vehicle industry?

- Which safety stock method is the most suitable considering identified factors in research question one?

Method – To accomplish the purpose of this study and to answer the research questions, a literature study was conducted to form a theoretical framework. As a complement to the literature study a case study was conducted in terms of interviews and document studies.

Findings – This study has identified factors that are important to take into consideration when dimensioning safety stocks. Through identified factors the most suitable safety stock method for companies in the electronic to vehicle industry was formed.

Implications – Difficulties in this study has been to find relevant information regarding the electronic to vehicle industry. Information was necessary to find to create a trustworthy industry context.

Limitations – This study only focus on the electronic to vehicle industry. This means that identified factors and suitable safety stock method are not necessarily applicable to other industries.

Keywords – Safety stock calculation, delivery precision, delivery safety.