Formula
Reorder point = Average daily demand × Lead time + Safety stock.
Calculate the inventory level at which a new purchase order should be triggered.
Multiply daily demand by supplier lead time and add the desired safety-stock buffer.
Reorder point = Average daily demand × Lead time + Safety stock.Calculate the inventory level at which a new purchase order should be triggered.
Reorder point = Average daily demand × Lead time + Safety stock.
Multiply daily demand by supplier lead time and add the desired safety-stock buffer.