Receipt and Scope

Lead-Time Receipt

After the order is placed, deterministic lead-time demand consumes stock before the receipt arrives.

highlighted = computed this step

Place order

At the reorder point, place an order for 12 units.

Q=12Q=12
Lead-time receiptThe chart shows deterministic lead-time demand, safety stock left, and receipt.lead-time receiptR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only

Lead-time demand

During lead time, deterministic demand consumes 6 units.

lead-time demand=6\text{lead-time demand}=6
Lead-time receiptThe chart shows deterministic lead-time demand, safety stock left, and receipt.lead-time receiptR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only

Safety stock left

Safety stock left before receipt is 4 units.

10−6=410 - 6 = 4
Lead-time receiptThe chart shows deterministic lead-time demand, safety stock left, and receipt.lead-time receiptR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only

Receipt

The receipt restores stock to 16 units.

4+12=164 + 12 = 16
Lead-time receiptThe chart shows deterministic lead-time demand, safety stock left, and receipt.lead-time receiptR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only