hi everyone, if average daily use 400,max use 520, min use 180,lead time 10 to 15 days and reorder quantity 8000…………whether i will calculate ROL by average formulae or the max formulae,……………..???
If they want to avoid any chance of stock outs, then the reorder level should be the maximum lead time x the maximum demand per day. (i.e. 15 x 520 = 7800)