Safety Stock Calculator

Enter the max daily usage, max lead time, average daily usage, and average lead time into the calculator to determine the safety stock

Safety Stock Formula

The following formula is used to calculate the safety stock of a product.

S = (MU*ML) – (AU*AL)

  • Where S is the safety stock
  • MU is the maximum daily usage
  • ML is the maximum lead time
  • AU is the average daily usage
  • AL is the average lead time

Safety Stock Definition

A safety stock is defined as the total amount of stock a company should have on hand to handle any sudden increase in demand.


Safety Stock Example

How to calculate safety stock?

  1. First, determine the maximum daily usage.

    This should be the large daily usage the product has seen over it’s lifetime.

  2. Next, determine the maximum lead time.

    This will be the longest time it’s taken the product to be delivered to your warehouse, or longest time it took to produce if it’s being made in house.

  3. Next, determine the average usage.

    This will be the average daily usage over the most recent time period.

  4. Nest, determine the average lead time.

    As before, calculate the average lead time to receive or produce product.

  5. Finally, calculate the safety stock.

    Using the formula above, calculate the safety stock you require.

FAQ

What is a safety stock?

A safety stock is the amount of goods or products a company should have on hand at all times to mitigate any rapid changes in demand of a product?

How much safety stock should i have?

The equation above is the standard formula for calculating your safety stock levels, but your true levels should be based on many factors like cash flow, past demand issues, ect.


safety stock calculator
safety stock formula

Related Terms

safety stock calculator
safety stock formula
how to calculate safety stock
safety stock calculation excel
how to calculate safety stock and reorder point
safety stock formula excel
safety stock formula derivation
buffer stock formula
safety stock equation
how to calculate safety stock and reorder point in excel
safety stock formula supply chain
cycle service level formula
how to find safety stock
safety stock and reorder point
safety stock level formula
safety inventory formula
how to determine safety stock
lead time demand formula
safety stock calculation formula
service level calculation for safety stock
how to calculate buffer stock
safety stock calculator online
demand during lead time formula
cycle stock calculation
buffer stock calculation
how do you calculate safety stock
stock out probability calculation
safety stock reorder point
buffer inventory formula
safety stock inventory formula
how to calculate safety stock in excel
how to compute safety stock
optimal stocking level formula
how to calculate safety stock level
difference between safety stock and reorder point
lead time and safety stock
how to calculate lead time demand
safety stock lead time
safety stock calculation example
inventory safety stock calculation
maximum lead time formula
safety stock formula with service level
how to calculate the safety stock
safety stock formula in excel
safety stock formula in cost accounting
safety stock calculation excel template
cycle stock calculator excel
determination of safety stock
how is safety stock calculated
safety stock standard deviation
dynamic safety stock calculation in excel
reorder point formula with safety stock
determining safety stock
safety stock z score
safety stock quantity
safety stock calculation methods
stockout risk formula
buffer stock calculation formula
how to calculate demand during lead time
safety stock formula demand variability
safety stock and lead time
how to calculate safety stock with standard deviation
optimal stocking level calculator
stockout formula
how to calculate reorder point with safety stock
stock reorder level formula
safety stock calculation using standard deviation
how to calculate safety stock with lead time
safety stock computation
how to calculate safety inventory
how to calculate standard deviation of lead time
simple safety stock calculation
example of safety stock
probability of stockout formula
calculating safety stock levels
brown’s formula safety stock
service level inventory formula
standard deviation of demand during lead time formula
how to compute for safety stock
equation for safety stock
how to calculate buffer inventory
how to define safety stock
reorder point without safety stock
safety stock formula standard deviation
wilson formula safety stock
optimal safety stock level formula
reorder level and safety stock