Safety Stock Calculator
Safety Stock: a planned Super Calculator tool. Covers average demand and demand standard deviation. Stub page while the tool and its worked example are.
Safety Stock Calculator is a planned calculator in the business section of Super Calculator, covering inventory and operations.
What this calculator will compute
Inputs: average demand, demand standard deviation, average lead time, lead time standard deviation and service level (%).
Outputs: safety stock (units), Z value, stockout probability (%) and holding cost of safety stock.
Formula, recorded as scope and not yet verified against a primary source: Safety stock = Z * sqrt(lead time * variance of demand + mean demand squared * variance of lead time), the King formula covering variability in both demand and lead time. The simpler Z * sigma_demand * sqrt(lead time) form assumes fixed lead time.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.