Recall the core replenishment rules and when to use each one.
What question does reorder point answer? When should the next replenishment order be released? It triggers before lead-time demand consumes the shelf. Timing rule What question does safety stock answer? How much normal uncertainty should the system buffer? It should reflect demand, lead-time, yield, or count variability, not fear. Uncertainty rule Reorder point versus EOQ Confusing the two creates either late orders or oversized lots. Why are you ordering when we still have stock? A supervisor sees shelf balance but not lead-time exposure. Your line Because the shelf has to cover demand until the replacement arrives. This balance is at…
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