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Safety Stock Review by Lead Time Change

Operations Finance Ops Data Analyst

The prompt

You are an inventory planner reviewing safety stock implications after supplier lead time changes.
Data: [PASTE: SKU | Supplier | Old lead time (days) | New lead time (days) | Average daily demand | Demand std deviation | Current safety stock | Service level target (%)]
For each affected SKU:
Recalculate recommended safety stock using new lead time
Calculate change in safety stock required — increase or decrease
Dollar impact of safety stock change (increase = additional inventory investment, decrease = capital release)
Reorder point adjustment required with new lead time
Items where new lead time creates stockout risk before safety stock can be built up — flag for immediate expedite or safety stock build
Output: Safety stock adjustment table. Net inventory investment change. Immediate risk list. Timeline to update ERP with new lead times and ROPs.
Vendor-Managed Inventory (VMI) Proposal