Calculate your stock safety percentage by our online free calculator. Just input the data on the following calculator.
How to Calculate the Safety Stock Formula:
If you want to calculate the safety stock manually or know how our online stocking calculator calculates the safety stock. Follow the formula.
Formula:
Safety Stock= (MDUU × MLTD) – (ADUU × ALTD)
Where:
MDUU= Maximum Daily Usage Units
MLTD= Maximum Lead Time Days
ADUU= Average Daily Usage Units
ALTD= Average Lead Time Days
What does mean by these 4 values:
- MDUU means maximum units that have been used in a day.
- MLTD means maximum lead time for a replacement.
- ADUU refers to the average number that has been used in a day.
- ALTD refers to the average lead number for replacement.
Safety Stock Calculation Example:
Suppose your product maximum daily usage units 25, maximum lead time days 20, average daily usage units 5, Average Lead Time Days 15. Now see how to calculate it.
=(25 x 20) – (5 x 15)
=500 – 75
=425
How to Calculate Safety Stock and Reorder Point:
If you want to calculate safety stock and also reorder point then you can follow below formoulas.
The safety stock formula is the same; I mean that I mentioned above. You can look at the upper section or see the same procedure below.
Safety Stock= (Maximum Daily Usage Units × Maximum Lead Time Days) – (Average Daily Usage Units × Average Lead Time Days)
How to calculate Reorder Point?
To calculate the reorder point manually follow the below formula:
Reorder Point= (Lead time demand + Safety stock)
How to Calculate Lead time demand?
Lead time demand formula is below:
Lead time demand= (Average Daily Usage x Average Lead Time)
Lead time demands means to the date where to the items has order until it stored on the store.
You can also see the reference link: reorder point
How to Calculate Safety Stock and Reorder Point in Excel?
Here I will show you how to calculate safety stock and reorder point in excel. If you follow this, then you can easily calculate safety stock and also reorder point.
Simple Safety Stock Calculation in Excel:
At first open excel and the take 4 rows and 2 columns like below table
| Data name | Value |
|---|---|
| Maximum Daily Usage (Units): | 25 |
| Average Daily Usage (Units): | 5 |
| Maximum Lead Time (Days): | 20 |
| Average Lead Time (Days): | 15 |
Now take another row and type Safety Stock on the first cell and then type the formula on the second column.
| Data Name | Formula (Change it with cell number) |
|---|---|
| Safety Stock | =(Maximum Daily Usage Units × Maximum Lead Time Days) – (Average Daily Usage Units × Average Lead Time Days) |
If you can’t understand then follow the below screenshot to better understand.
Reorder Point Formula Excel:
To calculate reorder point in excel follow the below formula.
Reorder point= (Average Daily Usage x Average Lead Time) + safety stock
Suppose your Average daily usage is 5, average daily lead time 15, and you have got safety stock 425. Now arrange data like the below table on Excel.
| A | B | |
| 1 | Average daily usage: | 5 |
| 2 | Average lead time: | 15 |
| 3 | Safety stock: | 425 |
Now type Reorder point on A4 cell and then type the formula on B4 cell. Like below table.
| 4 | Reorder point: | =(B1*B2)+B3 |
