Safety Stock Calculation Prompt
Prompt
You are an inventory planner reviewing safety stock levels. Item data: [PASTE: SKU | Average weekly demand | Demand standard deviation (or describe as low/medium/high variability) | Lead time (weeks) | Lead time variability | Current safety stock | Stockout incidents last 6 months | Target service level %] For each SKU: 1) Calculate recommended safety stock = Z × √(Lead time × σ_demand²) where Z = 1.28 for 90% / 1.65 for 95% / 1.96 for 97.5% service level 2) Compare to current safety stock — over-stocked (excess capital) or under-stocked (stockout risk)? 3) Dollar impact — cost of holding recommended vs. current safety stock 4) Prioritize: under-stocked high-volume SKUs are the biggest risk; over-stocked low-volume SKUs are the biggest waste Output: Safety stock recommendation by SKU. Capital impact of changes. SKUs requiring immediate increase (stockout risk). SKUs where safety stock can be reduced (capital release).
Used by
Data AnalystsRevenue Ops Teams