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Safety Stock & Reorder Point Calculator

Set a safety stock that allows for both usage swings and late deliveries. Enter your averages or paste daily usage, choose a service level, and get the reorder point, par level and the value of stock it ties up.

  • Demand + lead-time variability
  • Paste usage history
  • SKU list → CSV
  • No sign-up

01Item

02Daily usage

cases
cases

Standard deviation of daily usage

03Supply

days

Order placed → delivered

days

How much it varies

days

Your ordering cycle (review period)

04Service & cost

95% · z 1.64

Chance a delivery cycle doesn’t run out

$

Reorder point

191cases

Reorder when stock falls to this

Safety stock

65cases

Buffer for a 95% service level

Par level

322cases

Order up to this every 7 days

Order today
162 cases
Safety stock value
$4,200
Avg. stock held
$8,618
Expected stockouts
2.6 / yr

05Demand over the next 14 days

From ordering until the delivery after next you expect to use 252 cases (σ 42.4). A par level of 322 covers that 95% of the time. The shaded tail is the chance of running out. Your current 160 cases on hand and on order cover it 2% of the time.

200 cases300 cases400 casesCASES USEDPar 322

06What each extra point of service costs

Safety stock rises steeply as you approach 100%. At 95% you hold $4,200 of buffer; going to 97% would take $4,852.

$0$2K$4K$6K$8K80%85%90%95%SERVICE LEVEL

07Safety stock for a whole SKU list

Paste or edit rows: sku, avg daily usage, usage σ, lead time, lead time σ, unit cost, on hand. Uses the 95% service level and 7-day cycle above.

SKUSafety stockReorder pointPar levelOn handOrder nowBuffer value
Chicken breast 40lb41034529$609
Romaine hearts 24ct2421318$162
Fryer oil 35lb3718414$151
Burger buns 8ct x 1251163954$220
To-go clamshell 9in51018612$290
5 SKUs$1,432

5 SKUs · 1 site · one point in time

These par levels are only right until usage or lead times change. In most kitchens and supply rooms that is next week.

Bollard recalculates par levels for every SKU at every site from actual usage and supplier lead times, then drafts the replenishment order for approval.

See live par levels in Bollard

Method

The formulas behind the numbers

Safety stock = z × √(L·σd² + d²·σL²). The first term covers usage swings during the lead time; the second covers deliveries that arrive late. Ignoring the second term is the most common reason safety stock fails.

Reorder point = d × L + safety stock, for when you reorder as soon as stock hits a level. Par level = d × (L + R) + z × √((L+R)·σd² + d²·σL²), for when you order on a cycle of R days.

z comes from the inverse normal distribution for your service level (1.645 for 95%, 2.326 for 99%). If you paste usage history, d and σd are calculated from it.

Read the guide: Safety stock: how much you need, and why late deliveries matter more than busy days

From one site to every site

A safety stock calculated once becomes wrong as soon as usage or lead times change.

Bollard recalculates safety stock and par levels for every SKU at every site from actual consumption and the lead times your suppliers actually deliver, then drafts the replenishment order.

  • Par levels that update from real usage
  • Supplier lead times measured from receipts
  • Replenishment orders drafted per site
  • Stockouts and overstock tracked by site
See Bollard in action

Questions

Frequently asked

What is the safety stock formula?+

This calculator uses safety stock = z × √(L × σd² + d² × σL²), where d is average daily usage, σd its standard deviation, L the average lead time in days, σL the lead-time standard deviation and z the service-level factor. It covers both variable demand and variable lead time.

How do I calculate the reorder point?+

Reorder point = average daily usage × lead time + safety stock. When stock on hand plus stock on order falls to that level, place the next order.

What service level should I use?+

It depends on what a stockout costs. Critical items, such as surgical supplies or a menu’s signature ingredient, often justify 98 to 99.5 percent. Low-impact items can sit at 90 to 95 percent. The cost chart shows how quickly safety stock grows as you approach 100 percent.

What is the difference between a reorder point and a par level?+

A reorder point is used when you watch stock continuously and order when it drops to a set level. A par level is used when you order on a fixed schedule: you top up to par every few days, so it must also cover usage until the next delivery.

What does the service level actually mean?+

It is the cycle service level: the probability that you do not run out during one replenishment cycle. At 95 percent with weekly orders, you would expect to run short in about 2.6 of 52 cycles a year.

Is my data uploaded?+

No. All calculations, including the SKU list and CSV export, run in your browser.

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Free tools, no sign-up. Your figures are processed in your browser and are not uploaded to a server unless you ask us to email you a result. Results are estimates for planning and do not constitute financial, legal or tax advice.