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▶ Free · Safety Stock Calculator

How much safety stock should you hold?

Enter your daily demand, its variability, your lead time and the service level you target. Safety stock and reorder point are calculated instantly, and the chart shows what a higher service level costs in stock.

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Safety stock

191.8 units

Reorder point

1,091.8 units

Expected demand during lead time

900 units

z value: 1.645

Safety stock needed by service level
012525037550080%85%90%95%100%Selected: 191.8

Safety stock (units) · Service level

Let's talk about the result

▶ How it's calculated

  • Safety stock = z × √(L × σd² + d² × σL²). d is average daily demand, σd the standard deviation of daily demand, L the average lead time in days, σL the standard deviation of lead time, and z the standard normal value for the target service level.
  • Reorder point = d × L + safety stock.
  • Service level here is the probability of not running out during one replenishment cycle (cycle service level). Demand is assumed to be roughly normally distributed.
  • For slow, irregular sellers this assumption breaks down and different methods are needed.

Let's read the result together.

In a short call we go through your result together and talk about where it makes sense to start. The "Let's talk about the result" button under the tool adds a summary of your result to the booking notes.

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