Retail & Inventory

Safety Stock

Estimate a demand-variability buffer for a constant lead time and selected normal z-score.

Your numbers

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Your result

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How to use this calculator

  1. Enter standard deviation of daily unit demand, constant lead time in days, user-selected normal service z-score.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

Safety stock = service z-score × daily demand standard deviation × √(constant lead-time days).

Assumptions and limitations

Assumes independent daily demand and constant lead time. It does not equal a guaranteed fill rate and does not include lead-time variability.

Worked example

With standard deviation of daily unit demand = 5, constant lead time in days = 16, user-selected normal service z-score = 1.645, safety stock in units is approximately 32.9.

What the result means

The service z-score represents a cycle-service probability only under the stated normal independent-demand model.

Common questions

How should I interpret safety stock in units?

The service z-score represents a cycle-service probability only under the stated normal independent-demand model.

What should I check before using this result?

Assumes independent daily demand and constant lead time. It does not equal a guaranteed fill rate and does not include lead-time variability.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.