Formula
Usable safety inventory = recorded safety units × availability factor. Coverage days = usable safety inventory ÷ average daily demand. Balance after delay = usable safety inventory − (daily demand × delay days).
What the result means
Coverage days is the time the usable safety buffer can support average demand after ordinary replenishment stock is exhausted. It represents protection time, not the supplier’s normal lead time.
Demand can vary from the average. For volatile items, test a higher daily demand or lower availability factor rather than treating the estimate as a guarantee.