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Safety stock calculator

Safety stock from demand and lead-time variability at a target cycle service level.

Safety factor Z
1.6449
Combined sigma
208.806
Safety stock
343.5 units
Demand during lead time
900 units
  • Lead-time variability dominates demand variability here: stabilising supply will cut stock faster than better forecasting.

Methodology

This is the combined-variability form: safety stock = Z × √( lead time × demand variance + demand² × lead-time variance ). Z is the safety factor for the target cycle service level, taken from the inverse standard-normal distribution. The first term under the root covers demand varying while lead time holds; the second covers lead time itself varying. Demand during lead time = average daily demand × average lead time, and is shown so the safety buffer can be read against it. The model assumes approximately normal, independent demand and lead-time variation and a fixed target service level. It does not model seasonality, trend, correlated supplier failures, lumpy or intermittent demand, or the cost trade-off between holding and stockout. Cycle service level is the probability of not stocking out during a replenishment cycle — it is not the same as fill rate. You supply every input: this site holds no live freight rates, transit times, or duty tables, and never estimates them for you. Results are an orientation model, not a quotation, and not customs, tax, insurance, or financial advice. Confirm duty rates, VAT treatment, and carrier terms with the relevant authority or provider before relying on them.

These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.

Data limitations

  • Logistics figures are operator-supplied inputs, not market data. GeoBusinessIQ holds no freight rates, transit times, capacity, or throughput data and does not estimate them — every result reflects only the figures you enter.

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