PLANNING TOOLS
Put your assumptions to work.
Explore how replenishment time and disruption affect stock requirements. This deterministic scenario uses your inputs; it is not an inventory optimisation or service-level model.
02 / YOUR SCENARIO
Annual carrying cost of that extra stock: $11,880.00 USD, if held for a full year.
Your current 7-day buffer is 3 days shorter than the 10-day disruption.
Transparent calculations
Stock cover
Buffer stock = daily demand × buffer days.
Normal reorder point = daily demand × (normal lead time + buffer days).
Disruption reorder point = daily demand × (normal lead time + disruption days + buffer days).
Capital requirement
Additional stock = daily demand × disruption days.
Extra inventory value = additional stock × unit value.
Annual carrying cost = extra inventory value × carrying cost percentage / 100.
What the calculation leaves out
No demand distribution, lead-time variability, order quantities, open purchase orders, seasonality, shelf life, lost-sales cost or target service level is modelled. Buffer days are chosen by you, not statistically derived safety stock. Additional stock retains the same buffer after a longer lead time; it does not mean all of those units will be consumed. Annual carrying cost assumes that stock is held for an entire year.
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