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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.
Формула
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
Водич корак по корак
- 1Average daily demand (D)
- 2Lead time in days (LT)
- 3Safety stock (SS)
- 4Formula: reorder point = (D × LT) + SS
- 5Reorder when inventory reaches this level
Worked Examples
Инпут
50/day use, 5day lead
Резултат
Order at 250
Common Mistakes to Avoid
- ✕Ignoring lead time variability
- ✕Not updating for seasonal demand changes
Frequently Asked Questions
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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