Given the data below, calculate the reorder point (ROP).
Average daily demand = 30 units/day
Lead time = 4 days -
Safety stock = 20 -
Given the data below, calculate the reorder point (ROP).
Average daily demand = 30 units/day
Lead time = 4 days -
Safety stock = 20 -
The reorder point (ROP) is calculated by the formula: ROP = (Average daily demand × Lead time) + Safety stock. Given the data: Average daily demand = 30 units/day, Lead time = 4 days, and Safety stock = 20 units, the calculation is as follows: ROP = (30 units/day × 4 days) + 20 units = 120 units + 20 units = 140 units. Therefore, the correct answer is 140 units.
ROP=(Average daily demand×Lead time)+Safety stock ROP=(30×4)+20 =120+20 ROP=140
For certain demand, no need safety stock