Safety stock formula

Safety stock formula description:
This infographic explains the formula needed to calculate safety stock. This is a simplified formula that can be used by any retailer to estimate the amount of safety stock required for their inventory. Safety stock is important because it  is a fixed amount of extra stock you have allocated yourself to mitigate risk during lead time. Warehouse management systems use safety stock as an indicator for when a customer’s inventory is at warning levels. By knowing how much to calculate for safety stock, you can prevent overselling or underselling your inventory, and make sure you have a good level of stock at all times.