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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,
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Seeking your helps please. Thank you so much!
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