Method and assumptions
This maximum-average method is simple and conservative. It is useful when detailed demand distributions are unavailable but reliable peak observations exist.
Safety stock = maximum daily sales × maximum lead time - average daily sales × average lead time. Reorder point adds average lead-time demand.
Common questions
Should one exceptional sales spike be used?
Only when it represents a plausible future condition. Otherwise use a reviewed service-level method.
Is supplier production time included in lead time?
Include every day from order placement until inventory becomes sellable, including receiving delays.
Independent calculator. Not affiliated with or endorsed by the platforms mentioned.