Set a Reorder Point Without Guessing

A fast-moving filter is at 87 units. Demand averages 12/day, supplier lead time is 6 days, and the team wants 2 days of safety stock. Reorder point = demand during lead time + safety stock The common trap is ordering only when the bin looks low, which ignores the six days when demand continues before supply arrives. Find lead-time demand 12 units/day x 6 days = 72 units This is the inventory likely to sell before the new order arrives. Add safety stock 2 days x 12 units/day = 24 units The buffer protects against normal demand or lead-time wobble.…

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