Article describing safety stock calculation including calculation of standard deviation, service factor, reorder point, for inventory demand with normal distribution.
First of all, here's the formula so you don't have to dig through my well-written article for it.Safety Stock: {Z*SQRT(Avg. Lead Time*Standard Deviation of Demand^2 + Avg. Demand^2*Standard Deviation of Lead Time^2} If that wasn't clear to...
www.inventorymanagementreview.org/2005/06/safety_stock.h<br/>tml
-
Get Site Info