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Safety Stock Formula Guide (PDF)
A focused PDF reference for safety stock — with both the simple max-average formula and the statistical version, plus a service-level table.
What's inside
- Simple max-average safety stock formula
- Statistical safety stock formula
- Service-level multiplier table (90 percent to 99.9 percent)
- Worked example with electronics SKU
- How to differentiate by ABC class
Why safety stock matters
Without safety stock, even a perfect reorder point hits a service level of roughly 50 percent. Safety stock is what turns the average into the 95-plus percent customers expect.
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