Safety Stock calculation and Reorder point calculation

[subpad]

Hi,
could you please share your Safety stock formula and ROP formula.

from my search, i got the following forumla for SS and ROP,

1. Safety Stock: {Z*SQRT(Avg. Lead Time*Standard Deviation of Demand^2 + Avg. Demand^2*Standard Deviation of Lead Time^2


2. Re-order Point (ROP): Average Lead Time*Average Demand + Z*SQRT(Avg. Lead Time*Standard Deviation of Demand^2 + Avg. Demand^2*Standard Deviation of Lead Time^2)

from search, i got this formula ..but i cant understand..what is the meaning for this symbol ^

Pleases guide me. in advance, thanks.

[subpad]

can any one help me....

[Starbucks Junkie]

Originally Posted by subpad

Hi,
could you please share your Safety stock formula and ROP formula.

from my search, i got the following forumla for SS and ROP,

1. Safety Stock: {Z*SQRT(Avg. Lead Time*Standard Deviation of Demand^2 + Avg. Demand^2*Standard Deviation of Lead Time^2


2. Re-order Point (ROP): Average Lead Time*Average Demand + Z*SQRT(Avg. Lead Time*Standard Deviation of Demand^2 + Avg. Demand^2*Standard Deviation of Lead Time^2)

from search, i got this formula ..but i cant understand..what is the meaning for this symbol ^

Pleases guide me. in advance, thanks.

Subpad,

The symbol means to the power of 2, in other words 2 standard deviations etc..

I have a safety stock calculation spreadsheet tool, if you are interested, if you private message me with your email address I will send it to you with an explanation of how to use it.

[Sporkman]

Originally Posted by Starbucks Junkie

Subpad,

The symbol means to the power of 2, in other words 2 standard deviations etc..

a^b means "a raised to the bth power", though not sure about the standard deviations part..?

[Neo]

Originally Posted by Starbucks Junkie

Subpad,

The symbol means to the power of 2, in other words 2 standard deviations etc..

I have a safety stock calculation spreadsheet tool, if you are interested, if you private message me with your email address I will send it to you with an explanation of how to use it.

SJ,

Can you send me this safety stock calculation spreadsheet tool.
I hope you still have my email address.

Tks

[Starbucks Junkie]

Neo,

Unfortunately, I do not have your email address, I had to clear my PM file as it got too large.

Please send me a new PM with your email address.

Thanks

SJ

[ankit.tiwari]

Hi SJ
Can u please forward me also the excel sheet for Safety Stock Calculation??

Also if you have any other excelsheets with calculations of other SCM models, please share.

Thanks in advance

Ankit

[Starbucks Junkie]

Originally Posted by ankit.tiwari

Hi SJ
Can u please forward me also the excel sheet for Safety Stock Calculation??

Also if you have any other excelsheets with calculations of other SCM models, please share.

Thanks in advance

Ankit

Ankit,

Please Private Message me with your contact email address and I will gladly forward some material to you.

SJ