Checked if a safety stock recalculation previously carried out must be used as the basis of the reorder calculation.
Formula: Security stock = K * sigma * lead time
Where:
- K = given coefficient according to the service rate associated with the ABC class if consumption uses a standard law.
- sigma = standard deviation of the average daily consumption - monthly standard deviation/root (number of days).
- lead time = purchase lead time or production lead time. The calculation is only carried out if there is a minimum history available. The number of months in the history used has a ceiling with a maximum number or months defined (the most recent months).