Safety Stock Advanced Calculator

Safety Stock Calculator

Safety Stock Calculator

Safety Stock Calculator

Component Description
Lead Time Demand The demand for a product during its lead time.
Standard Deviation of Demand The variability in demand during the lead time.
Service Level The desired probability of not facing a stockout during the lead time.
Safety Stock The additional quantity of a product kept in inventory to reduce the risk of a stockout.
Formula Safety Stock = Z × σLT, where Z is the service level factor and σLT is the standard deviation of lead time demand.
Purpose Used to ensure adequate inventory levels to meet customer demand and avoid stockouts.

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