Work the reorder point for a fast SKU

A fast energy drink sells 5 units per day. Supplier lead time is 4 days. You want 8 units of safety stock because Fridays spike and deliveries sometimes slip. Reorder point = lead-time demand + safety stock The common trap is waiting until stock is nearly gone, then acting surprised when the supplier lead time creates empty columns. Calculate lead-time demand 5 units per day x 4 days lead time = 20 units. This is what you expect to sell while waiting for replenishment. Add safety stock 20 units lead-time demand + 8 units safety stock = 28 units. The…

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