Safety Stock

Calculate the buffer needed for variable demand and lead times.

Demand

Demand input method
Average daily demand (units)

Lead time

Average lead time (days)

Calculation method

Method
Demand std dev (units/day)
Lead time std dev (days)
Set to 0 if lead time is consistent.
Target service level
The likelihood of having stock available - at 99%, 1 in 100 order cycles encounters a stock out.

Cost

Optional — to calculate the annual holding cost of safety stock.

$

Unit landed cost ($)

%

Annual holding cost %

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