par
Mohd Shweter , Logistics and Inventory Controller , AJM kooheji Group
Safety Stock:
{Z * SQRT (Avg. Lead Time * Standard Deviation of Demand ^2 + Avg. Demand ^2 * Standard Deviation of Lead Time ^2)}.
(note ^2 means ‘square’)
Reorder Point:
Average Lead Time*Average Demand + Safety Stock.