Reorder Point and Safety Stock Calculator
Compute the classic reorder point demand times lead time plus z times sigma times the square root of lead time.
Description
Compute the classic reorder point demand times lead time plus z times sigma times the square root of lead time.
Reorder Point and Safety Stock Calculator: Compute the classic reorder point demand times lead time plus z times sigma times the square root of lead time.
When to use Reorder Point and Safety Stock
Use this logistics calculation for a transparent shipment, inventory, warehouse, customs, packaging, carrier, or service-level estimate when the governing units and business rules are explicit.
- Demand/period
- Average demand per period.
- Demand sigma
- Standard deviation of demand per period.
- Lead time
- Replenishment lead time in periods.
- z
- Service-level factor z from the standard normal distribution.
How Reorder Point and Safety Stock works
Compute the classic reorder point demand times lead time plus z times sigma times the square root of lead time. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.1
- Safety stock
- Safety stock units z * sigma * sqrt(lead time).
- Reorder point
- Reorder point in units.
Limitations and assumptions
- Carrier tariffs, customs rules, dangerous-goods requirements, hours-of-service rules, surcharges, port terms, dimensional divisors, and service definitions vary by jurisdiction, contract, date, mode, and commodity. A calculation is not a booking, classification, or compliance determination.
- Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.
Alternative or Complementary approaches
Verify current carrier and authority documents, retain shipment dimensions and timestamps, test boundary cases, and reconcile estimates against invoices and operational scans.
References
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Inventory management — Wikipedia contributors
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