What-If and Scope

What-If Lead Time

A shorter lead time reduces lead-time demand and the exact reorder point.

highlighted = computed this step

Shorter Lead Time

The what-if lead time is 3 days.

what-if lead time=3\text{what-if lead time} = 3
Shorter lead timeThe table recomputes lead-time demand and reorder point when lead time changes.three-day lead-time what-ifvaluelead time3lead demand60safety stock15reorder point75

Recompute Lead-Time Demand

Lead-time demand falls to 60 units.

20×3=6020\times3 = 60
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

What-If Reorder Point

The shorter-lead-time reorder point is 75 units.

60+15=7560 + 15 = 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