If, Item= "A" , Demand of monthly= "n", Delivery time= "t" weeks and Lead time= "l" months. So how much the re-order qty?

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Asanka Hiniduma Gamage · Answer

ROL=Demand*Lead time + Safety stock, Demand=12n, Safety stock=n/30*t, ROL=12nt + nt/30, Re-order qty= ROL - Phy qty

gino meneses · Answer

Safety Stock, First In First Out Deliveries

Mohd Shweter · Answer

Safety Stock:
{Z * SQRT (Avg. Lead Time * Standard Deviation of Demand ^2 + Avg. Demand ^2 * Standard Deviation of Lead Time ^2)}.
(note ^2 means ‘square’)
Reorder Point:
Average Lead Time*Average Demand + Safety Stock.

Nisar Khan · Answer

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If, Item= "A" , Demand of monthly= "n", Delivery time= "t" weeks and Lead time= "l" months. So how much the re-order qty?

i will suggest to maintain a minimum of300 units each month, If the lead time was 4 weeks I might carry 5 weeks

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