Safety Stock Optimization Prompt

You are an inventory planner reviewing safety stock levels.
Item data: [PASTE: SKU | Average daily demand | Demand standard deviation | Lead time (days) | Lead time standard deviation | Current safety stock | Stockout incidents last 6 months | Service level target (%)]
For each item, calculate:
Recommended safety stock = Z × √(Lead time × σ_demand² + Avg_demand² × σ_lead_time²) where Z = 1.28 for 90% / 1.65 for 95% / 1.96 for 97.5% / 2.33 for 99% service level
Compare to current safety stock — over-stocked / under-stocked / optimal
Dollar impact of recommended change — increase in carrying cost or reduction in tiedup capital
Stockout risk assessment — items currently under-stocked; quantify service level risk
Prioritize: Under-stocked items (service risk) first, then significantly over-stocked (excess capital).
Output: Safety stock recommendation table. Total capital freed if over-stocked items reduced. Total stockout risk exposure if under-stocked items not addressed.
Reorder Point Audit