Free tool

Safety stock calculator

Work out how much buffer stock to hold so a slow supplier or a busy week doesn't leave you sold out. Two methods: simple days of cover, or the statistical formula.

Standard deviation: how much daily sales swing around the average. A spreadsheet's STDEV of your last 28 days of daily unit sales gives it.

Method 1: days of cover

Safety stock = average daily sales × safety days

Easy to explain and good enough for most stores. Sell 6 a day and want a week of buffer: 6 × 7 = 42 units.

Method 2: statistical safety stock

Safety stock = Z × σ daily sales × √lead time

Z comes from the service level you want (the chance you don't run out during a lead time): 1.28 for 90%, 1.65 for 95%, 1.96 for 97.5%, 2.33 for 99%. With σ = 2.5 and a 21-day lead time at 95%: 1.65 × 2.5 × 4.58 = 19 units.

The statistical method rewards steady sellers with a smaller buffer and gives volatile ones a bigger one. It assumes your lead time is reliable. If it isn't, use the simple method with more days.

From safety stock to reorder point

Reorder point = daily sales × lead time + safety stock

Plug both into the reorder point calculator to get an order-by date and quantity, or read the forecasting guide.

FAQ

What is a good safety stock level?

For most small Shopify stores, 7 to 14 days of average sales is a sensible starting point. Use more for long or unreliable lead times and for best-sellers where a stockout is expensive.

What is the safety stock formula?

Simple: average daily sales x safety days. Statistical: Z x standard deviation of daily sales x square root of lead time in days, where Z sets your service level (1.65 for 95%).

Is safety stock the same as reorder point?

No. Safety stock is the buffer. The reorder point is lead-time demand plus that buffer: daily sales x lead time + safety stock.

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