Safety Stock and Reorder Point

Reorder Point

The reorder point adds deterministic lead-time demand and safety stock.

highlighted = computed this step

Add Safety Stock

The reorder point is lead-time demand plus safety stock.

R=lead-time demand+safety stockR=\text{lead-time demand}+\text{safety stock}
Reorder pointThe chart shows lead-time demand plus safety stock for the base case and what-if.base 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

Reorder Point

The exact reorder point is 95 units.

80+15=9580 + 15 = 95
Reorder pointThe chart shows lead-time demand plus safety stock for the base case and what-if.base 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