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Reorder point and preferred wrong calculation?

Hi,

May I seek your help Gurus regarding reorder point and preferred. I got the same result for both

ROP =100

Preferred = 100

as far as I know, it will only be the same when ROP>Preferred


Here's the details:


My own calculation is

ROP = 800, I used the formula

[(14+7)* (6000 qty/180)+100]


Preferred = 1000

(6000/180)*30

I used the formula when "With safety stock quantity defined:

Reorder point = [(average Lead Time days + Safety Stock days) * Daily Demand * Est Demand Change]+ Safety Stock quantity"

180 days only since no prior sales from the set "order interval" of 12 months..therefore will use half interval as per SA 28065,

---


Seeking your helps please. Thank you so much!

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