Extra Stock to Cover Demand Changes
Estimate buffer for changes in demand when delivery lead time fixed.
Your numbers
Extra stock for demand changes
Independent daily demand with stable variance and fixed lead time. Choose service factor separately; e no guarantee fill rate.
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Formula
Use SS = zσ√L. z na service factor wey you choose, σ na standard deviation of daily demand, and L na fixed lead time in days. E assume independent daily demand with stable variance.
Estimate buffer for changes in demand when delivery lead time fixed.
Example wey show the calculation
- Service-level factor z
- 1.65
- Standard deviation of demand for each day
- 10
- Fixed number of days before supply arrive
- 9
- Extra stock for demand changes
- 49.5 units
Where e fit work and limits
Independent daily demand with stable variance and fixed lead time. Choose service factor separately; e no guarantee fill rate.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 397103b95ec8 · Example don get check: