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Good Morning,
A little confused on the following formula;
AVG INV = Buffer Safety Inventory + (Re-order amount/2).
Question: The other Min & Max use the word Re-Order Level inside their formula. What does Re-Order Amount stand for, i.e Is it Reorder Qty, Reorder Level, EOQ etc?
Possibly should tackle some questions before posting but hey ho, first post and I’m sure I will learn the game as I go along…
Thanks in advance to any en-lighteners…
Craig G
Sorry Guys, should have taken my own advice. Just found the answer whilst doing a question….
For the record —> Its Re-Order Qty.
I wish BPP would have just kept it simple by sticking with same names as a wee bit deceiving using Qty in the MIN & MAX and then amount in the Average.
All they would then have to advise us students is that Amt and Qty can be used interchangeably as terminology but mean the exact same thing……
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