MS EXCELL

M

MAXIMA

Need formula to figure safety stock.

Safety stock is 3 months usage
Forecast is 23 per month
Lead Time is 120 days
What should be my safety stock?

HELP
 
M

Mike H

Hi

safety stock (m) Usage (mth) lead time Minimum re-order level
3 23 4 161

and the formula for re-order level is
=(A2*B2)+C2*B2

At 161 in stock it will take 4 months to get new stock.
In that 4 months usage will be (4*23)= 92 so stock will fall to
69 which is the minimum safety dtock

Mike
 
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