Reorder Point Solution

STEP 0: Pre-Calculation Summary
Formula Used
Reorder Point = Lead Time Demand+Safety Stock
RP = DL+S
This formula uses 3 Variables
Variables Used
Reorder Point - The Reorder Point is the point at which the inventory is ordered for replenishment.
Lead Time Demand - Lead Time Demand is the Average number of orders requested during the Lead Time.
Safety Stock - Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.
STEP 1: Convert Input(s) to Base Unit
Lead Time Demand: 1875 --> No Conversion Required
Safety Stock: 2560 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
RP = DL+S --> 1875+2560
Evaluating ... ...
RP = 4435
STEP 3: Convert Result to Output's Unit
4435 --> No Conversion Required
FINAL ANSWER
4435 <-- Reorder Point
(Calculation completed in 00.004 seconds)

Credits

Created by Suman Ray Pramanik
Indian Institute of Technology (IIT), Kanpur
Suman Ray Pramanik has created this Calculator and 50+ more calculators!
Verified by Akshada Kulkarni
National Institute of Information Technology (NIIT), Neemrana
Akshada Kulkarni has verified this Calculator and 900+ more calculators!

12 Industrial Parameters Calculators

Binomial Distribution
Go Binomial Distribution = Number of Trials!*(Probability of Success of Single Trial^Specific Outcomes within Trials)*(Probability of Failure of Single Trial^(Number of Trials-Specific Outcomes within Trials))/(Specific Outcomes within Trials!*(Number of Trials-Specific Outcomes within Trials)!)
Normal Distribution
Go Normal Distribution = e^(-(Specific Outcomes within Trials-Mean of Distribution)^2/(2*Standard Deviation of distribution^2))/(Standard Deviation of distribution*sqrt(2*pi))
Learning Factor
Go Learning Factor = (log10(Time for Task 1)-log10(Time for n Tasks))/log10(Number of Tasks)
Poisson Distribution
Go Poisson Distribution = Mean of Distribution^(Specific Outcomes within Trials)*e^(-Mean of Distribution)/(Specific Outcomes within Trials!)
Annual Devaluation Rate
Go Annual Devaluation Rate = (Rate of Return Foreign Currency-Rate of Return USD)/(1+Rate of Return USD)
Crashing
Go Cost Slope = (Crash Cost-Normal Cost)/(Normal Time-Crash Time)
Forecasting Error
Go Forecasting Error = Observed Value at Time t-Smooth Averaged Forecast for Period t
Macroscopic Traffic Density
Go Traffic Density in vpm = Hourly Flow Rate in vph/(Avg. Travel Speed/0.277778)
General Sewing Data
Go GSD = (Man Power*Work Hours)/Target
Traffic Intensity
Go Traffic Intensity = Mean Arrival Rate/Mean Service Rate
Variance
Go Variance = ((Pessimistic Time-Optimistic Time)/6)^2
Reorder Point
Go Reorder Point = Lead Time Demand+Safety Stock

Reorder Point Formula

Reorder Point = Lead Time Demand+Safety Stock
RP = DL+S

What is Reorder Point?

The Reorder Point is the point at which the inventory is ordered for replenishment. It is a minimum amount of an item that a firm holds in stock, such that, when a stock falls to this amount, the item must be reordered.

How to Calculate Reorder Point?

Reorder Point calculator uses Reorder Point = Lead Time Demand+Safety Stock to calculate the Reorder Point, The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock. Reorder Point is denoted by RP symbol.

How to calculate Reorder Point using this online calculator? To use this online calculator for Reorder Point, enter Lead Time Demand (DL) & Safety Stock (S) and hit the calculate button. Here is how the Reorder Point calculation can be explained with given input values -> 4435 = 1875+2560.

FAQ

What is Reorder Point?
The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock and is represented as RP = DL+S or Reorder Point = Lead Time Demand+Safety Stock. Lead Time Demand is the Average number of orders requested during the Lead Time & Safety Stock is the extra stock that is always maintained to mitigate any future risks arising due to stock-outs.
How to calculate Reorder Point?
The Reorder Point is the level of inventory that triggers an action to replenish that particular inventory stock is calculated using Reorder Point = Lead Time Demand+Safety Stock. To calculate Reorder Point, you need Lead Time Demand (DL) & Safety Stock (S). With our tool, you need to enter the respective value for Lead Time Demand & Safety Stock and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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