Position and Trigger

Reorder Point

The reorder point covers deterministic lead-time demand plus safety stock.

highlighted = computed this step

Lead-time demand

Lead-time demand is 6 units.

dL=6dL=6
Inventory positionThe chart recomputes positions and order decisions from exact inputs.inventory position checkR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only

Add safety stock

Add safety stock of 4 units.

S=4S=4
Inventory positionThe chart recomputes positions and order decisions from exact inputs.inventory position checkR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only

Reorder point

The reorder point is 10 units.

R=6+4=10R=6 + 4 = 10
Inventory positionThe chart recomputes positions and order decisions from exact inputs.inventory position checkR = 6 + 4 = 10inventory position checksnapshoton handon orderbackorderspositiondecisionexample day812020waitlater100010orderlead-time arithmeticdemand 6safety left 4start 10receipt +12after receipt 16deterministic demand and lead time only