Safety Stock Calculator

Step 1: Multiply Max Daily Usage (${maxDailyUsage}) by Max Lead Time (${maxLeadTime}): ${maxDailyUsage} × ${maxLeadTime} = ${(maxDailyUsage * maxLeadTime).toFixed(2)} units
Step 2: Multiply Average Daily Usage (${avgDailyUsage}) by Average Lead Time (${avgLeadTime}): ${avgDailyUsage} × ${avgLeadTime} = ${(avgDailyUsage * avgLeadTime).toFixed(2)} units
Step 3: Subtract Step 2 from Step 1: ${(maxDailyUsage * maxLeadTime).toFixed(2)} - ${(avgDailyUsage * avgLeadTime).toFixed(2)} = ${safetyStock.toFixed(2)} units

A safety stock calculator is a tool used to determine the extra inventory a business should hold to prevent stockouts due to demand variability or supply chain disruptions. It ensures businesses can meet customer demand even when unforeseen delays or demand spikes occur.

‍How to Use a Safety Stock Calculator

Enter the Desired Service Level: Input the percentage of orders you want to fulfill without stockouts (e.g., 95%).
Provide Demand Data: Add the average and standard deviation of demand during the lead time.
Input Lead Time Variability: Include the average lead time and its variability (if applicable).
Apply the Formula: The calculator uses the provided inputs to compute the safety stock level.
Review Results: Use the calculated safety stock to adjust inventory levels and ensure adequate coverage.

3 Examples of a Safety Stock Calculator

Retailers: Ensure sufficient stock during holiday sales surges or promotional periods.
Manufacturers: Maintain critical components in inventory to avoid production delays.
E-commerce Businesses: Handle unexpected spikes in demand during flash sales or seasonal peaks.