The max-min method is a simpler rule-of-thumb approach. It compares a worst-case usage and lead time scenario against your average scenario to estimate extra inventory. The standard deviation method is more statistical and is often better when you have reliable demand variability data. If your team wants a quick estimate, max-min can work well. If you’re targeting a specific service level and want a more structured buffer calculation, the standard deviation method is usually the better fit.
" }, "name" : "What’s the difference between the max-min method and the standard deviation method?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "No. Safety stock is just the buffer inventory you keep to protect against uncertainty. Reorder point is broader: it usually includes expected demand during lead time plus safety stock. That’s why this tool includes a reminder that safety stock is a buffer, not your reorder point. Keeping that distinction clear helps prevent under-ordering and reduces confusion during replenishment planning.
" }, "name" : "Does safety stock mean the same thing as reorder point?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "That usually happens when the inputs create a negative safety stock result, which doesn’t make practical sense. For example, in max-min mode, if maximum usage or maximum lead time is lower than the average values, the formula can break down. The tool flags that issue, shows a warning, and returns zero until the inputs are corrected. It’s a simple way to keep the result usable and prevent misleading recommendations.
" }, "name" : "Why would the calculator show zero with a warning?" } ] } ```