Free Safety Stock Calculator
What is Safety Stock?
Safety stock is the extra inventory you keep to protect against variability in demand and supply lead times. It serves as a buffer to prevent stockouts when sales are higher than expected or when supplier deliveries are delayed.
How to Use This Calculator
Enter your maximum daily usage, average daily usage, maximum lead time, and average lead time. Our calculator will determine the optimal safety stock level for your inventory.
Safety Stock Calculator
This is the extra buffer inventory you should maintain to prevent stockouts.
Understanding the Factors
- Maximum Daily Usage: The highest number of units you might sell in a single day.
- Average Daily Usage: The typical number of units you sell each day.
- Maximum Lead Time: The longest time it could take for a supplier to deliver your order.
- Average Lead Time: The typical time it takes from ordering until inventory arrives.
Benefits of Proper Safety Stock Levels
Setting appropriate safety stock levels helps your business:
- Maintain customer satisfaction through consistent product availability
- Buffer against unexpected supply chain disruptions
- Handle sudden surges in demand without stockouts
- Balance inventory costs with service level requirements
- Reduce the need for expedited shipping and emergency orders
Pro Tip
Review and adjust your safety stock levels quarterly. As your business grows or seasonality changes, your buffer needs will evolve. Too little safety stock risks stockouts, while too much ties up valuable capital.