Calculate Reorder Point With Safety Stock

ROP = average daily demand x lead time + safety stock A component uses 80 units per day. Supplier lead time is 9 days. The team wants 240 units of safety stock. What inventory level should trigger the next order? Reorder point equals lead-time demand plus safety stock The common trap is reordering by visual feel or last year's minimum level even after demand or lead time changes. Step 1 Lead-time demand = 80 units/day x 9 days = 720 units This is the normal expected usage while waiting for replenishment. Step 2 Add safety stock = 720 + 240…

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