Set reorder points that survive lead time
Use lead-time demand plus safety stock to set a reorder trigger.
The move: use Reorder Point + Safety Stock to turn inventory noise into a specific control. Set reorder points that survive lead time matters because inventory is both a service promise and a cash commitment. A weak process treats every shortage as a reason for more stock and every excess report as a reason for cuts. A stronger process asks what mechanism produced the signal. Annual usage value points to control intensity. Lead-time demand points to reorder timing. WIP and throughput point to flow time. SCOR points to process ownership. Use this as a practical sequence: name the SKU or…
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