What is the right calculation of safety stock?
It should account for: • the service level you want to provide for that SKU at that location, • its demand, • supply lead time, • the noise in those two variables, • customer lead time and, • quantity you typically produce (i.e. EOQ) Try our Safety Stock Calculator to see if your numbers are in the right range.
Related Questions
- What is the difference between "planned consumption" and "Unplanned consumption"? Can safety stock calculation be done on either of these?
- Does Floyd Bell Inc. stock a minimum inventory of customer parts as safety stock for fast response to changes in demand?
- What is the right calculation of safety stock?
