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.
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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