Safety stock0
Reorder point0
Safety stock value–
| Service level | z | Safety stock | Value |
|---|
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.