# Buffer Stock Calculator Online

Last updated on by Editorial Staff

Note: In this calculator, we have used Greasley’s Method.

## Quick Guide to Use This Calculator

• Enter the Desired Service Level, Standard Deviation of Lead Time, and Average Demand in units.
• Click the “Calculate” button to determine the Buffer Stock required.
• Use the “Reset” button to clear the input fields and start over.

## Formula

Buffer stock = Desired service level X Standard deviation of lead time X Average demand

• Desired service level: It will be expressed in %
• The standard deviation of lead time will be expressed in days
• Average demand will be expressed in units per day

• Desired Service Level
• The desired service level is the target level of customer satisfaction or order fulfillment a company aims to achieve. It is often expressed as a percentage and represents the probability that demand will be met without stockouts.
• Standard Deviation of Lead Time
• The standard deviation of lead time is a measure of the variability or dispersion in the time it takes for an order to be fulfilled, from placing the order to receiving it. A higher standard deviation indicates greater uncertainty in lead times.
• Average Demand
• Average demand is the mean or average quantity of a product or material demanded over a specific period. It provides a baseline for understanding the typical consumption or sales rate.

## What is buffer stock?

Buffer stock is an additional quantity of inventory held to mitigate the risk of stockouts due to uncertainties in demand, lead time, and supply chain variability.

## Who Can Use This Calculator?

Manufacturers, inventory managers, supply chain professionals, and businesses involved in production planning and inventory control can benefit from the Buffer Stock Calculator.

## Industries That Can Use Buffer Stock Calculator

Manufacturing industries, retail, logistics, and any business dealing with inventory management can utilize this calculator for effective stock planning.

## Benefits of Using This Calculator

• Accurate buffer stock calculation to prevent stockouts.
• Improved inventory management.
• Enhanced production planning.
• Minimized excess stock and holding costs.
• Increased customer satisfaction with better order fulfillment.

## FAQs

### How does Buffer Stock Calculator help in inventory management?

Buffer Stock acts as a safety net to handle uncertainties, preventing stockouts and ensuring a smooth flow of products.