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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?

A.B.C.D.E.

Logistics Procurement Stock Control Auditing Warehouse Management
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Question added by Prabin Rai , inventory officer , bijaya motor
Date Posted: 2017/05/22
Upvote (0) Views (6) Followers (3) Answers (3) Report Question
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Nadeem Asghar
by 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
by Muhammad Farooq , QA-QC Manager , AL Bawani Contracting Co

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

Mohammed Awad
by Mohammed Awad , Operations Coordinator - Jordan and Iraq (Consultancy) , Lutheran world federation

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

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