SOURCESQUID® Safety stock

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Demand

Lead time

Value (optional)

Safety stock0
Reorder point0
Safety stock value–
Service levelzSafety stockValue

SS = z × √(LT × σd² + d² × σLT²), which combines demand variation over the lead time with lead-time variation at average demand, assuming the two are independent and roughly normal. z is the one-sided standard normal value for the cycle service level. Use the same time unit (days) for demand and lead time. Results are rounded up to whole units.