Link to our Safety Stock 101 blog post

Instructions:

1) Safety Stock Calculator sheet includes sample data. It includes white and gray fields.
2) White fields should be filled out manually.
3) Gray fields are automatically calculated. For more rows in the sheet please copy formulas to following fields.
4) White fields;
SKU Code: This is the sku code is the related product
Max Daily Order Qty: This is the max quantity that can be shipped for this product in a day.
Avg Daily Order Qty: This is the average quanity that can be shipped for this prouct in a day.
Unit Purchase Price: This is the unit purchase price of this product from the vendor.
Unit Sales Price: This is the unit sales price of this product to customers.
Expected Lead Time: This is the number of days that this product can be supplied from the vendor.

5) Gray area comes up with 3 different scenarios for safety stock.

1) Cost Effective Strategy: This strategy calculates safety stock based on average daily order qty. The principle is to be cost effective.
2) No shortage Strategy: This strategy makes sure that we don't run out of stock in case of maximum order quantity.
3) Aggressive Strategy: This strategy comes up with an aggressive safety stock strategy. This scenario makes sure that we don't run out for expensive produ
n out for expensive products and not for relatively inexpensive products.
 Max Daily Order Avg Daily Order INPUTUnitDATA
Purchase Unit Sales Expected Lead
SKU Volume (Quantity) Volume (Quantity) Price Price ($) Time(Days)
14 5 11 2
A1003 14 5 $ 20.00 $ 50.00 2
A1004 11 4 $ 0.80 $ 2.00 3
A1002 20 7 $ 1.20 $ 3.00 3
A1005 8 3 $ 3.20 $ 8.00 3
A1001 10 2 $ 0.40 $ 1.00 1
A1006 17 5 $ 4.00 $ 10.00 3
A1000 18 8 $ 0.40 $ 1.00 2
Total Revenue Min Cost Effective
Safety StockMin Safety
Daily Stock
SafetyStrategy
Stock No Shortage (Max) Safety Stock Strategy
($) Quantity Cost Estimation Max Safety Stock Quantity
52 85 $ 330.80 242
$ 250.00 10 $ 200.00 28
$ 8.00 12 $ 9.60 33
$ 21.00 21 $ 25.20 60
$ 24.00 9 $ 28.80 24
$ 2.00 2 $ 0.80 10
$ 50.00 15 $ 60.00 51
$ 8.00 16 $ 6.40 36
e (Max) Safety Stock
Daily Strategy
Safety Stock Cost Aggressive
Aggressive Growth
Safety StockSafety Stock
Daily Strategy
Safety Stock
Estimation Quantity Cost Estimation
$ 957.60 192 $ 927.80
$ 560.00 28 $ 560.00
$ 26.40 12 $ 9.60
$ 72.00 58.5 $ 70.20
$ 76.80 24 $ 76.80
$ 4.00 2 $ 0.80
$ 204.00 51 $ 204.00
$ 14.40 16 $ 6.40