Reorder Point and Safety Stock Calculation
July 3rd, 2008
The Reorder Point = (Estimated Demand over Lead Time) + Safety Stock
Safety Stock covers variations in Demand and Lead Time.
As part of the Supply Chain Coaching Membership, members get access to an interactive online worksheet, where they can enter their own historical sales data and the desired service level.
The reorder point is calculated online.
Entry Filed under: Inventory Management
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