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Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?

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تم إضافة السؤال من قبل Prabin Rai , inventory officer , bijaya motor
تاريخ النشر: 2017/05/22
Nadeem Asghar
من قبل Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

I agree to both of above replies and would like to add the following as well from a reply given by Mostafa Abouelsaad to a very similar question earlier:  

Quote:

However you should also consider the following factors before ordering:

 

  • Is there a minimum order quantity for the needed units?
  • Is it a seasonal product?
  • Is your Purchasing budget enough for the needed units?

Unquote

Muhammad Farooq
من قبل Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

By multiplication of figures -------------

Mohammed Awad
من قبل Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

You will need to multiply both numbers together to get the final figure.  This is your safety stock.

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