Security inventory supplies a « cushion » in stock to deal with the uncertainty in a buyer’s demand. You will need to keep the « proper » quantity of security inventory. Whether it is too low, we could not be capable to fulfill a clients’ orders in a well timed style. Then again, security inventory that’s too excessive incurs important monetary and/or logistics burden to the enterprise.
The calculation of security inventory relies on plenty of elements embody historic buyer calls for, product lead time and fill fee (a.okay.a., demand satisfaction). The crew at safetystockcalc.com builds a website and describe a popular approach to calculate safety stock using an example. On the web site, you might also discover two free instruments which can be helpful, an online calculator and a downloadable spreadsheet with all of the formulation. Take pleasure in!
Online Safety Stock Calculator Screenshot
Spreadsheet Safety Stock Calculator Screenshot
