Calculate the reorder point

A hydraulic filter has average demand of 18 per month, supplier lead time of 12 days, and recent stockouts at reorder point 4. Reorder Point = lead-time demand plus safety stock The common trap is raising max quantity after a stockout while leaving the reorder trigger too low for the supplier lead time. Convert demand 18 filters per month / 30 days = 0.6 filters per day. Daily demand lets the lead-time window use the same time unit. Cover lead time 0.6 filters per day x 12 lead-time days = 7.2, rounded to 8 filters. The reorder point must cover…

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