Calculate a practical reorder point using lead-time demand plus safety stock.
Thinset demand averages 44 pallets per week. The supplier lead time is now 9 days. The branch wants a safety stock of 14 pallets because demand spikes around weekend contractor pickups. What reorder point should trigger replenishment? Reorder point = lead-time demand + safety stock Using the old 5-day trigger after lead time changes hides risk until the branch is already inside the supplier waiting window. Convert weekly demand 44 pallets per week divided by 7 days = about 6.3 pallets per day. Use the demand rate that matches the lead-time unit. If lead time is in days, convert demand…
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