Safety Stock 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.


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


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.

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