What-If and Scope

Honest Reorder-Point Scope

This reorder point is exact arithmetic for one deterministic snapshot, not a stochastic service guarantee.

highlighted = computed this step

Deterministic Snapshot

The rule uses fixed demand, fixed lead time, and fixed safety stock.

base R=95what-if R=75\text{base }R=95\quad\text{what-if }R=75
Reorder-point what-ifThe chart compares the base reorder point with the shorter-lead-time case.what-if reorder pointR = 80 + 15 = 95lead demand plus safety stockbase lead 4lead demand 80R 95what-if lead 3lead demand 60R 75safety stock is 15 in both rowscaseleaddemand/daylead demandsafetyRbase420801595what-if320601575deterministic reorder-point arithmetic only

Honesty Note

This is deterministic reorder-point arithmetic only. It does not model demand uncertainty, service levels, lead-time uncertainty, supplier reliability, lost sales, or forecast accuracy.

reorder-point arithmetic is not a service-level proof\text{reorder-point arithmetic is not a service-level proof}
Reorder-point what-ifThe chart compares the base reorder point with the shorter-lead-time case.what-if reorder pointR = 80 + 15 = 95lead demand plus safety stockbase lead 4lead demand 80R 95what-if lead 3lead demand 60R 75safety stock is 15 in both rowscaseleaddemand/daylead demandsafetyRbase420801595what-if320601575deterministic reorder-point arithmetic only