Inventory & Performance

Safety Stock & Reorder Point

Estimate safety stock and reorder point from demand variability, lead time and selected service-level assumptions.

Note: Assumes demand standard deviation is measured per day and lead time is in days, with stable lead time and an approximate normal-demand model. It does not include lead-time variability.

Formula

SS = z × σ × √lt. ROP = (avg × lt) + SS.

FAQs

Service level?

95% common start.

← All tools | Suggest a change