Re: Safety Stock Calculation

Since we use 4-4-5 type accounting periods, we had to develop a method
that would put terms on equal ground, so we use a download from Mapics
Browser and put the past demand history into Excel and calculate the
standard deviation, and then multiply this by the appropriate factor
from the standard table of service level factors as listed below. This
becomes our safety stock.

 

 

 

Desired Service Level

Safety Factor Multiplier

50.0000%

 

          -   

 

80.0000%

 

     0.840 

 

84.1300%

 

     1.000 

 

90.0000%

 

     1.280 

 

95.0000%

 

     1.650 

 

97.7200%

 

     2.000 

 

98.0000%

 

     2.050 

 

99.0000%

 

     2.330 

 

99.8700%

 

     3.000 

 

99.9300%

 

     3.200 

 

99.9969%

 

    4.000 

 

 

Jeff

 

-----Original Message-----
From: mapics-l-bounces+jeff.anderson=hayssen.com@xxxxxxxxxxxx
[mailto:mapics-l-bounces+jeff.anderson=hayssen.com@xxxxxxxxxxxx] On
Behalf Of RArnold@xxxxxxxxxxxxxx
Sent: Tuesday, July 11, 2006 1:32 PM
To: mapics-l@xxxxxxxxxxxx
Subject: [MAPICS-L] Safety Stock Calculation

 

We've had some questions arise here on what method of equation we should


be using to calculate safety stock.  Would you mind sharing what you
use? 

Currently we use this at the end of the month:  Safety Stock = Sum of 12


the last 12 months deviations from the 12 month average /12 x 2
xSQRT(Lead 

Time/21).

 

TIA,

 

Bob.

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