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Safety Stock

Safety stock = z · σ · √L - how many spares to carry above expected demand to cover lead-time demand variability.

MaintenanceInventory
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Formula, assumptions, and limits

SS=zσLSS = z \cdot \sigma \cdot \sqrt{L}
SymbolMeaningUnit
zzNormal-quantile for service level
σσDemand volatilityunits / period
LLLead timeperiods

Source: IACS UR Z18 - Critical equipment and spares

In short

Safety stock = z \u00b7 \u03c3 \u00b7 \u221aL - how many spares to carry above expected demand to cover lead-time demand variability.

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