
Safety Stock Calculation for Products with Fluctuating Lead Times
📄 Prompt Template
For [CompanyName], calculate the safety stock for [ProductName] by considering fluctuating lead times. First, assess the variation in lead times over the past [TimePeriod], and compute the standard deviation. Next, gather the historical demand data and calculate the standard deviation of demand. Use the formula: Safety Stock = Z * √(LeadTimeVariance * DemandVariance). The Z value should reflect the desired service level, adjusted for the unpredictable nature of lead time. Present the final safety stock levels for each product.