Demand and Lead Time

Policy Inputs

Reorder-point arithmetic starts with exact demand, lead time, safety stock, and order quantity.

highlighted = computed this step

Demand rate

Demand is 2 units per day.

d=2d=2
Policy inputsThe deterministic reorder-point example starts with four exact inputs.policy inputsvaluedemand rate2lead time3safety stock4order quantity12

Lead time

Lead time is 3 days.

L=3L=3
Policy inputsThe deterministic reorder-point example starts with four exact inputs.policy inputsvaluedemand rate2lead time3safety stock4order quantity12

Safety stock

Safety stock is 4 units.

S=4S=4
Policy inputsThe deterministic reorder-point example starts with four exact inputs.policy inputsvaluedemand rate2lead time3safety stock4order quantity12

Order quantity

The order quantity is 12 units.

Q=12Q=12
Policy inputsThe deterministic reorder-point example starts with four exact inputs.policy inputsvaluedemand rate2lead time3safety stock4order quantity12