re order level

This topic has 1 reply, 2 voices, and was last updated 14 years ago by John Moffat.

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March 2, 2012 at 6:10 am #51680
m1n2b3v
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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,……………..???
March 2, 2012 at 11:35 am #95038
John Moffat
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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)
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