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  • Supply Chain View: Reorder Point Example Calculations

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    IyusYustian
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    The document provides an example calculation for determining reorder point (ROP) for inventory management. It lists parameters like forecast demand, supplier lead time, review time, and safety stock. Based on the entered values, it then calculates the effective lead time, lead time demand, reorder point, order up quantity, and recommends placing an order for 14 units to maintain sufficient inventory levels.

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    ROP Calculator

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    ROP Calculator

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    The document provides an example calculation for determining reorder point (ROP) for inventory management. It lists parameters like forecast demand, supplier lead time, review time, and safety stock. Based on the entered values, it then calculates the effective lead time, lead time demand, reorder point, order up quantity, and recommends placing an order for 14 units to maintain sufficient inventory levels.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Supply Chain View: Reorder Point Example Calculations

    Uploaded by

    IyusYustian
    The document provides an example calculation for determining reorder point (ROP) for inventory management. It lists parameters like forecast demand, supplier lead time, review time, and safety stock. Based on the entered values, it then calculates the effective lead time, lead time demand, reorder point, order up quantity, and recommends placing an order for 14 units to maintain sufficient inventory levels.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    ROP calculation

    Supply Chain View


    A closer look at the supply chain www.supplychainview.com

    Reorder point example calculations V1.0


    Enter values for the parameters in the yellow cells below.
    For more information see http://www.supplychainview.com/blog/?p=88

    Forecast demand 5 units per week


    Supplier lead time 4 weeks
    Review time 1 weeks
    Process lead time 0 weeks
    Planned order size 5 units
    Safety stock 10 units

    Effective lead time 5 weeks


    Lead time demand 23 units
    Reorder point 33 units
    Order up to 38 units

    Stock on hand 8 units


    Stock on order 16 units
    Back-orders 0 units

    Effective stock 24 units

    Place an order? Yes


    Order size 14 units

    Page 1

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