Assumptions Past Sales Forecasted Sales Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Jan-08 Jan-08 5.91 5.01 5.03 5.29 5.97 5.89 5.5 5.5 5.5 Lead time (months): 3 Service level: 0.9 Calculations Formulas Comments Lead time demand: 16.5 SUM(H4:J4) Summing the forecasts Standard Deviation: 0.457063088 STDEV(B4:G4) Deviation in the past sales Service factor: 1.281551566 NORMSINV(D7) Inverse of the normal distribution Lead time factor: 1.732050808 SQRT(D6) Square root of lead-time to forecast ratio Safety stock: 1.014548616 D10*D11*D12 Combining factors Reorder point: 17.51454862 D9+D13 Lead time demand + safety stock "By Lokad.com, Copyright 2007" ##### Sheet/List 2 ##### Assumptions Past Sales Forecasted Sales Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Jan-08 Jan-08 5.91 5.01 5.03 5.29 5.97 5.89 5.5 5.5 5.5 0.41 -0.49 -0.47 -0.21 0.47 0.39 5.5 Lead time (months): 3 Service level: 0.9 Calculations Formulas Comments Lead time demand: 16.5 SUM(H4:J4) Summing the forecasts Standard Deviation: 0.457063088 STDEV(B5:G5) Deviation in the past sales Service factor: 1.281551566 NORMSINV(D7) Inverse of the normal distribution Lead time factor: 1.732050808 SQRT(D6) Square root of lead-time to forecast ratio Safety stock: 1.014548616 D10*D11*D12 Combining factors Reorder point: 17.51454862 D9+D13 Lead time demand + safety stock "By Lokad.com, Copyright 2007"