Which of the following values for ( z ) should we use in as a safety stock calculation if we want…

Written by

in

➤ How do I compute safety stock once I have the z value?
Multiply the z value by the standard deviation of demand during lead time: Safety stock = z × σ_LT. If demand and lead time vary, use the combined standard deviation for demand during lead time. Round up to practical units and add this buffer to average lead-time demand for reorder calculations.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *