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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.
Formula
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
Guida passo passo
- 1Average daily demand (D)
- 2Lead time in days (LT)
- 3Safety stock (SS)
- 4Formula: reorder point = (D × LT) + SS
- 5Reorder when inventory reaches this level
Esempi risolti
Ingresso
50/day use, 5day lead
Risultato
Order at 250
Errori comuni da evitare
- ✕Ignoring lead time variability
- ✕Not updating for seasonal demand changes
Domande frequenti
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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