I need to build a formula to calculate safety stock in Anaplan. I have lead time & usage data available. I am inquiring guidance with developing the z score formula. Inputs will be appreciated, thanks!
Alternatively, you can simplify your safety stock immensely by just using a forward looking forecast. Meaning, I want to have four weeks of forward supply as safety stock. You can easily accomplish this with a MOVINGSUM function. To be honest, that's what I use, and it works great for most use cases. Once you start going down the optimization path with a MAPE driven safety stock, e.g., I want to be 95% confident that I have enough inventory, then you run into all kinds of problems such as the errors are not normally distributed (which they normally aren't).
-calculate the decimal, round it, and convert it to text
-can use FINDITEM to match the result to a Z-Score "list" which you can manually create pretty quickly one time. Important thing here is to have the list's code = the rounded number so anaplan can match the z-score to the list
-can do lookups or whatever you need to now for each item!
-the stat forecasting app has ways to calculate mean, median, etc
Thank you for the suggestions @KBeltz! I have checked the stat app to see if there is a standard deviation and z score calculations but there is not any. Is there an excel similar function (STDEV) in Anaplan for standard deviation? Thank you for the support!
Thank you @JaredDolich for the recommended apps and the potential solution. Currently, we have a Weeks of Supply on Hand calculation that is driven by forward looking demand (forecast) rather than usage, and the logic for the WOH is similar to the solution you described. I will check the recommended apps to see if I can get further information to build a usage driven formula. Thanks again for the guidance!!