Calculate both the reorder point before safety stock and the safety stock requirement you will add to the reorder point for a 99.9% customer service level (99.9% CSL = 3σc). X = D(T) 2 σC = T(σD) + D (σT)
Average lead time (performance cycle time) in days = 5
Standard deviation of lead time (performance cycle time) in days = 2
Average daily demand = 100
Standard deviation of daily demand = 10