Example for Calculating Statistical Range of Coverage 
Example for Calculating Statistical Range of Coverage
Example Data for Average Daily Requirement
Requirement for 1st period |
1000 |
Requirement for 2nd period |
2000 |
Calendar period |
Week |
Period length |
Standard days (5 days) |
Number of periods |
2 |
Example Data for Determining the Range of Coverage
Target range of coverage for period 1 |
2 days |
Period 1 |
2 weeks |
Target range of coverage for period 2 |
4 days |
Period 2 |
3 weeks |
Calculation
(1000 + 2000)/(2*5) = 3000/10 = 300
Average requirement * range of coverage in period 1
300 * 2 = 600
Average requirement * range of coverage in period 2
300 * 4 = 1200
Result
For the first two weeks starting from the MRP date, a safety stock level of 600 pieces is planned.
For the following three weeks, a safety stock level of 1200 pieces is planned.