Evaluating Safety Inventory Given Fill Rate
Input
Demand per period (week), D = 300
Standard deviation of demand, sD = 100
Replenishment lead time, L = 2
Desired fill rate = 0.999
ESC Goal (from fill rate) = 1.50
Input Variable
fr
sLQss
0.9990 141 1,500 271
Formula
ESC
1.50
Results
Desired Safety stock = 271
Desired reorder point = 871
Use GOALSEEK with the following inputs: