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If, Item= "A" , Demand of monthly= "n", Delivery time= "t" weeks and Lead time= "l" months. So how much the re-order qty?

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Question added by Asanka Hiniduma Gamage , Warehouse Assistant Manager , Light and shade
Date Posted: 2014/07/23
Asanka Hiniduma Gamage
by Asanka Hiniduma Gamage , Warehouse Assistant Manager , Light and shade

ROL=Demand*Lead time + Safety stock, Demand=12n, Safety stock=n/30*t, ROL=12nt + nt/30, Re-order qty= ROL - Phy qty

gino meneses
by gino meneses , Sr. Document Controller , ERGA CONSULTANCY

Safety Stock, First In First Out Deliveries

Mohd Shweter
by Mohd Shweter , Logistics and Inventory Controller , AJM kooheji Group

Safety Stock: {Z * SQRT (Avg. Lead Time * Standard Deviation of Demand ^2 + Avg. Demand ^2 * Standard Deviation of Lead Time ^2)}. (note ^2 means ‘square’) Reorder Point: Average Lead Time*Average Demand + Safety Stock.

Nisar Khan
by Nisar Khan , Sr.Buyer " Fashion Retail-Textile" , Fawaz Abdullaziz Al Hokair & Co.

i will suggest to maintain a minimum of300 units each month,  If the lead time was 4 weeks I might carry 5 weeks

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