Demand and Lead Time

Lead-Time Demand

Lead-time demand is exact multiplication in this deterministic model.

highlighted = computed this step

Multiply

Lead-time demand is daily demand times lead time.

lead demand=demand per day×lead time\text{lead demand}=\text{demand per day}\times\text{lead time}
Reorder pointThe chart recomputes lead-time demand, safety stock, and the reorder point.reorder point and safety stockR = 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

Lead-Time Demand

Lead-time demand is 80 units.

20×4=8020\times4 = 80
Reorder pointThe chart recomputes lead-time demand, safety stock, and the reorder point.reorder point and safety stockR = 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