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Formulas
Safety stock = Z × √(lead time × σ_daily² + daily sales² × σ_leadtime²). Reorder point = daily sales × lead time + safety stock. Z comes from the service level (95% → 1.65, 98% → 2.05, 99% → 2.33). Max-minus-average method = max daily sales × max lead time − average daily sales × average lead time.
FAQ
What service level should I use?
95% is a common default. Use 98–99% for fast sellers where a stock-out loses the sale, and 90% for slow, low-margin items.
I don't know the standard deviation.
Leave it and fill in max daily sales and max lead time instead. The page then uses the max-minus-average method.
Is anything saved?
No. The numbers are calculated in your browser and are not sent anywhere.
Let the agent watch the reorder point for you
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