Jan 2009

10

Demand of goods

Feb 2009
29

Mar 2009
23

Indication: Demand Period = Lead time or 1 month

Methode

Result

Formula
N

1- Calculate the average of consumption per month :

32.92

x=

n +1

xn

(
N

2- Calculate the standard deviation:

14.00

dm=
3- Determine the desired service level, for exemple :

95%

4- Calculate the lead time factor with normal distribution

according service level:

1.64

5- Calculate safety stock level of goods:

23.02

n+1

xn x )

SS=z dm

Interpretation: To have 5% probability encountering stock-out your safety stock level should be of 23 goods

Comment: If the demand period and the lead time are not equal you can refer to the sheet " upgraded Demand Deviation"

Apr 2009
May 2009
32
33

Formula
N

x=

n +1

xn

(
N

m=

n+1

xn x )

SS=z dm

evel should be of 23 goods

eet " upgraded Demand Deviation"

Jun 2009
60

Jul 2009
Aug 2009
Sep 2009
12
40
46

Oct 2009
Nov 2009
37
45

Dec 2009
22

Jan 2010
39

Jan 2009
10

Demand of goods

Feb 2009
29

Mar 2009
23

Indication: Demand Period = 1 month

and Lead time = 3 months

Methode

Result

Formula
N

1- Calculate the average of consumption per month :

32.92

x
n 1

x
N

2- Calculate the standard deviation:

14.00

3- Calculate time ratio:

1.73

3- Determine the desired service level, for exemple :

95%

4- Calculate the lead time factor with normal distribution

according service level:

1.64

5- Calculate safety stock level of goods:

39.9

dm

tr =

n 1

lead time
demand periode

SS=z dmtr

Interpretation: To have 5% probability encountering stock-out your safety stock level should be of 39,9 goods due t

Apr 2009
May 2009
32
33

Jul 2009
Aug 2009
Sep 2009
12
40
46

Formula
N

x
n 1

x
N

dm

Jun 2009
60

n 1

lead time
demand periode

S=z dmtr

el should be of 39,9 goods due to a bigger lead time

Oct 2009
Nov 2009
37
45

Dec 2009
22

Jan 2010
39

Jan 2009

xn

Demand of goods -

Lead time demand in month - dmdl

Indication: Demand Period = 1 month
and Lead time = 1

Methode

Feb 2009

Mar 2009

10

29

23

Result

Formula
N

1- Calculate the average of consumption per month :

32.92

x=

n +1

xn

2- Calculate the standard deviation of demand lead

time:

0.40

3- Calculate time ratio:

1.00

3- Determine the desired service level, for exemple :

95%

4- Calculate the lead time factor:

1.64

5- Calculate safety stock level:

21.8

dmdl =

tr =

n +1

dmdl n dmdl
N

lead time
demand periode

SS=z dmtrx

Interpretation: To have 5% probability encountering stock-out your safety stock level should be of 21,82 goods due
Comment: If the demand period and the lead time are not equal refer to the sheet "upgraded Lead Time Deviation"

Apr 2009

May 2009

Jun 2009

Jul 2009

x=

n +1

Nov 2009

60

12

40

46

37

45

1.4

1.8

1.3

xn

Oct 2009

33

N
n +1

Sep 2009

32

Formula

Aug 2009

dmdl n dmdl )
N

lead time
demand periode

S=z dmtrx

vel should be of 21,82 goods due to the lead time deviation

ded Lead Time Deviation"

Dec 2009

Jan 2010

22

39

Jan 2009

xn

Demand of goods -

Lead time demand in month - dmdl

Indication: Demand Period = 1 month
and Lead time = 3

Methode

Feb 2009

Mar 2009

10

29

23

Result

Formula
N

1- Calculate the average of consumption per month :

32.92

xn

x= n +1
N

(
N

2- Calculate the standard deviation of demand lead

time:

0.40

3- Calculate time ratio:

1.73

3- Determine the desired service level, for exemple :

95%

4- Calculate the lead time factor:

1.64

5- Calculate safety stock level:

37.8

dmdl =

tr =

n +1

dmdl n dmdl
N

lead time
demand periode

SS=z dmtrx

Interpretation: To have 5% probability encountering stock-out your safety stock level should be of 37,8 goods due

Apr 2009

May 2009

Jun 2009

Jul 2009

Aug 2009

Sep 2009

Oct 2009

32

33

60

12

40

46

37

45

1.4

1.8

1.3

Formula
N

xn

x= n +1
N
N

n +1

Nov 2009

dmdl n dmdl )
N

lead time
demand periode

S=z dmtrx

vel should be of 37,8 goods due to the dobble effect with a bigger lead time and deviation

Dec 2009

Jan 2010

22

39

Jan 2009

xn

Demand of goods -

Lead time demand in month - dmdl

Indication: Demand Period = 1 month
and Lead time = 3

Methode

Feb 2009

Mar 2009

10

29

23

Result

Formula
N

1- Calculate the average of consumption per month :

2- Calculate the standard deviation:

2- Calculate the standard deviation of demand lead

time:

32.92

14.00

0.40

3- Calculate time ratio:

3.00

3- Determine the desired service level, for exemple :

95%

4- Calculate the lead time factor:

1.64

5- Calculate safety stock level:

45.5

x=

dm=

dmdl =

xn

N
N

( xn x )
n+1

( dmdl n dmdl )
n +1

tr =

SS= z

n +1

lead time
demand periode

tr +

dm 2

dmd

Interpretation: To have 5% probability encountering stock-out your safety stock level should be of 45,5 goods due
effect with a bigger lead time and deviation of demand and lead time

Apr 2009

Jun 2009

x=

mdl =

n +1

Aug 2009

Sep 2009

Oct 2009

Nov 2009

33

60

12

40

46

37

45

1.4

1.8

1.3

Jul 2009

32

Formula

dm=

May 2009

xn

N
N

( xn x )
n+1

( dmdl n dmdl )
n +1

tr =

lead time
demand periode

tr +
x2
2
2
dm
dmdl

vel should be of 45,5 goods due to the tripple

Dec 2009

Jan 2010

22

39