Estimate the inventory capacity needed to cover expected demand through a lead-and-review period while preserving a separate safety buffer. It combines cycle stock and safety inventory, then translates the total into storage space and pallet positions for practical capacity planning.
The main result is the unit capacity needed to hold expected protection-period demand plus the chosen safety buffer. It is a capacity estimate, not an automatic reorder quantity.
If replenishment is reviewed continuously rather than periodically, enter zero for the review period. Pallet positions are rounded up so partial pallets still receive space.
At 120 units per day, 14 lead-time days, a 7-day review period, and 600 safety units, required capacity is 3,120 units. At 0.015 m³ per unit and 80 units per pallet, that is 46.8 m³ and 39 pallet positions.
In periodic review systems, stock may need to cover both replenishment lead time and the time until the next review.
Yes. Use zero for a continuously reviewed system where no additional review interval must be covered.
No. It estimates storage capacity for protection-period demand plus buffer stock, not the size of each purchase order.
A partly filled pallet still occupies a pallet position, so the storage result uses the next whole position.
The calculated volume is product volume only. Apply your facility layout allowance separately for aisles, clearance, and equipment access.
| Input | Unit | Role |
|---|---|---|
| Average daily demand | units/day | Expected units issued or sold per day. |
| Supplier lead time | days | Average time from order placement to receipt. |
| Review period | days | Days between inventory reviews or order decisions. |
| Safety inventory | units | Extra units held above expected protection-period demand. |
| Storage volume per unit | m³ | Usable storage volume occupied by one unit. |
| Units per pallet | units | Full-unit capacity of one pallet position. |