Safety Stock Calculator
The Safety Stock Calculator helps supply chain managers determine the right buffer inventory to protect against demand variability and supply uncertainty. Safety stock prevents costly stockouts while minimizing excess carrying costs.
Safety Stock Calculator
Calculate buffer inventory to prevent stockouts
Examples
Consumer Goods Manufacturer
Max daily demand: 150 units, max lead time: 10 days, avg daily demand: 100 units, avg lead time: 7 days. Safety stock = 800 units.
Frequently Asked Questions
What is safety stock?
Safety stock is extra inventory kept on hand to protect against stockouts caused by unexpected demand spikes or supply delays. It acts as a buffer between your reorder point and zero inventory.
How do you calculate safety stock?
Basic formula: Safety Stock = (Max Daily Demand × Max Lead Time) − (Average Daily Demand × Average Lead Time). More advanced methods use standard deviation and service level z-scores.