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Calculates the inventory level at which to place a new order to avoid stockouts. Accounts for lead time and demand variability.
Formule
Formula: reorder point = (D × LT) + SS
- D
- D value — Variable used in the calculation
- LT
- LT value — Variable used in the calculation
- SS
- SS value — Variable used in the calculation
Stapsgewijze handleiding
- 1Average daily demand (D)
- 2Lead time in days (LT)
- 3Safety stock (SS)
- 4Formula: reorder point = (D × LT) + SS
- 5Reorder when inventory reaches this level
Uitgewerkte voorbeelden
Invoer
50/day use, 5day lead
Resultaat
Order at 250
Veelgemaakte fouten om te vermijden
- ✕Ignoring lead time variability
- ✕Not updating for seasonal demand changes
Veelgestelde vragen
Why is reorder point important?
Prevents stockouts by triggering orders in advance, accounting for lead time.
How does lead time affect reorder point?
Longer lead times require higher reorder points and more safety stock.
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