Find Your Optimal Safety Stock Level With Cost-Tradeoff Analysis

Calculate optimal safety stock levels for these items. ITEMS: [For each item, provide:] - SKU/Item: [NAME] - Average daily demand: [X units] - Demand standard deviation: [X units/day] - Average lead time: [X days] - Lead time standard deviation: [X days] - Current safety stock: [X units] - Target service level: [X% — e.g., 95%, 99%] - Unit cost: $[X] - Stockout cost estimate: $[X per incident or per unit] For each item: 1. Calculate safety stock using the combined demand and lead time variability formula 2. Calculate reorder point (ROP) 3. Show the safety stock at 90%, 95%, and 99% service levels 4. Compare current safety stock to optimal — am I over or understocked? 5. Calculate the carrying cost of the recommended safety stock 6. Calculate the expected annual stockout cost at each service level Summarize with a recommendation table: SKU, current safety stock, recommended safety stock, change, annual carrying cost impact, and recommended service level.