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Safety Stock Calculator

LAST UPDATE: August 24th, 2018

Calculator

What is Safety Stock?

Safety stock is the number of an item that should be kept in inventory to avoid running out of stock.

Formula

Safety Stock = (Max Daily Usage in Units x Max Lead Time in Days) – (Average Daily Usage in Units x Average Lead Time in Days)

Example

An item has a maximum daily usage of 15 units and a maximum lead time of 23 days. It also has an average daily usage of 7 units and an average lead time of 10 days.

Safety Stock = (15 x 23) – (7 x 10) = 345 – 70 = 275

Therefore, the safety stock level is 275 units.

Sources and more resources