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How to calculate safety stock in Excel and Google Sheets
Excel & Google Sheets
=B2*C2*0.1+B3✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Average Daily Usage | Lead Time (days) | Standard Deviation | Safety Stock |
| 100 | 5 | 15 |
=B2*C2*0.1+B3→7.5
Try it with your data
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Sample data — click any cell to edit
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Step by step
- 1Enter your average daily usage in cell B2.
- 2Input the lead time in days in cell C2.
- 3Place the standard deviation of daily usage in cell B3.
- 4Use the formula =B2*C2*0.1+B3 to calculate safety stock in cell D2.
Tips
- Adjust the multiplier (0.1 in this example) based on your desired service level.
- Ensure all inputs are in consistent units (e.g., days, units).
- Regularly update your usage and lead time data for accurate calculations.
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Frequently asked
What does the multiplier represent in the formula?
The multiplier represents the desired service level factor, which determines how much extra stock you want to keep.
Can I use a different formula for safety stock?
Yes, other formulas exist, such as Z-score methods, which consider the desired service level more precisely.
Why is safety stock important?
Safety stock helps prevent stockouts by accounting for variability in demand and supply lead times.