Can Reorder point and Safety stock work in Conjuction
One of my clients requirement is whenever they update the Re-Order point for Purchase item based on Weekly usage and Lead time , then the Safety stock should show the quantity 50% less than the re-order point
ROP = Weekly usage X Lead time per week
Safety Stock = 50% of reorder point
Has anyone came across such scenario, then kindly let me know the process implemented.
Regards,
Amit Mishra