Safety Stock Calculator

Estimate safety stock with maximum-versus-average daily demand and lead-time assumptions.

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Estimate a conservative inventory buffer with the maximum-versus-average demand and lead-time method. See the expected and peak lead-time requirements.

Enter your business figures

Average daily consumption from a representative historical period.

A realistic peak daily demand, at least the average.

Normal time from placing an order to usable stock arriving.

A realistic longest lead time, at least the average.

Each successful calculation uses one of this tool’s 8 daily free uses. Editing, resetting and invalid inputs use none. Your figures remain in your browser.

Worked example

Example output from the starting values. Enter your figures and press Calculate for your result.

Average lead-time demand
140 units
Peak lead-time demand
300 units
Safety stock
160 units
Reorder trigger with this buffer
300 units

Formula

Safety stock = (maximum daily demand × maximum lead time) − (average daily demand × average lead time).

How to use this calculation

30 units/day × 10 days − 20 units/day × 7 days = 160 safety units. Adding the 140-unit average lead-time demand gives a 300-unit reorder trigger.

  • This is the basic maximum-versus-average heuristic. It assumes peak demand and the longest delay can coincide; it is not a statistical service-level guarantee.
  • Use the same daily demand basis and lead-time day units. Maximum inputs must not be below their corresponding averages.
  • The buffer is rounded up to whole units. This simple approach may overstock seasonal, perishable or highly volatile products; review storage costs and real demand history.

Formula reference: NetSuite: Safety Stock calculation methods. General planning information, not a guarantee of business results.

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