Safety Stock

Adel Guitouni
4/9/20

Safety Stock

Inventory Safety stock - Normal distribution

Select
Select aa model
model and
and then
then enter
enter thethe data
data in
in the
the shaded
shaded area.
area. The
The model
model on
on the
the bottom
bottom left
left represents
represents
the
the 33 models
models described
described in
in the
the textbook
textbook under
under Other
Other Probabilistic
Probabilistic Models
Models
Model: Demand during leadtime and its standard deviation given Model: Daily demand and its standard deviation are given

Data Data
Average demand during lead time, µ Average daily demand
Standard deviation of σdLT Standard deviation of daily demand, σd
Service level (% of demand met) Lead time days
Service level (% of demand met)

Results Results
Z-value #VALUE! Z-value #VALUE!
Safety stock #VALUE! Average demand during lead time 0
Standard deviation of demand during lead time, σdLT 0.00
Safety stock #VALUE!
Reorder Point #VALUE!

Models: Either daily demand, lead time or both are variable

Data
Average daily demand
Standard deviation of daily demand Enter 0 if demand is constant
Average lead time (in days)
Standard deviation of lead time, σLT Enter 0 if lead time is constant
Service level (% of demand met)

Results
Z-value #VALUE!
Average demand during lead time 0
Standard deviation of demand during lead time, σdLT 0.00
Safety stock #VALUE!
Reorder point #VALUE!

469214082.xlsx