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Safety Stock Calculator

Free, in-browser. Computes safety stock three ways — demand variability only, lead-time variability only, and the combined formula — so you can see which source of uncertainty is actually costing you the buffer. Nothing leaves your machine.

Safety stock: 24.7 units
That is roughly 2.1 days of demand held as buffer.
Breakdown — demand variability only: 14.8 units · lead-time variability only: 19.8 units · combined (used above): 24.7 units. If lead-time variability dominates, compare the cost of improving supplier reliability with the cost of holding more stock.

The formulas

Demand variability only:    SS = z × σ_d × √LT
Lead-time variability only: SS = z × d × σ_LT
Combined (independent inputs):     SS = z × √(LT × σ_d² + d² × σ_LT²)

The combined approximation includes demand and lead-time variability and assumes they are independent. Check that assumption and the normal approximation before using the result. The z-score represents modeled cycle service, not guaranteed fill rate. If lead-time variability dominates, compare supplier reliability improvements with the cost of more inventory. Shortage cost and holding cost help frame that decision.

How to use this

  1. Pull daily demand mean and standard deviation from your POS (30–90 days; Excel: =AVERAGE(...), =STDEV.S(...)).
  2. Measure lead time from your last several POs — order date to arrival date — and its standard deviation, not the supplier's promise.
  3. Add unit cost to see the buffer as capital: safety stock is money standing still on purpose.
  4. Then plug the result into your reorder point or PAR level.

Review the observed demand pattern and test the planning assumptions for your items. To evaluate connected inventory signals and purchasing in LineNow, use your own data and check core and add-on terms.

Related

  • Safety stock — the concept
  • Reorder Point Calculator
  • PAR Level Calculator
  • Lead time
  • Stockout cost
  • Retail Replenishment, Complete
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