Safety Stock Calculator

Work out safety stock from demand variation and lead time.

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Safety Stock Calculator

How to use this tool

  1. Enter the service factor Z for your target service level.
  2. Enter the standard deviation of daily demand.
  3. Enter the lead time in days and press Generate.

Worked example

With a service factor of 1.65, demand variation of 20 units and lead time of 4 days, safety stock is 1.65 x 20 x square root of 4 = 1.65 x 20 x 2 = 66 units.

What this tool does not do / Limits

This is a planning estimate only. It assumes demand follows a normal pattern and lead time is fixed, and it ignores supplier reliability, seasonality and order-size rules.

Frequently asked questions

What Z value should I use?

Common values are 1.28 for 90%, 1.65 for 95% and 2.33 for 99% service levels.

Should I round the result?

Yes, round up to whole units, since you cannot hold a fraction of most items.

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