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Unformatted text preview: day, per period, per (units rate Demand where time Lead x Usage LT ROP d d d = = = = Usage (Demand rate )=d = 2 vitamins per day Lead time =LT = 7 days Reorder Point (ROP)= Usage x Lead time =2 vitamins per day x7 days =14 vitamins (tablets) Thus, Tingly should order when 14 vitamin tablets are left, order 27 tablets tablets 01 . 27 2 1 * 730 * 2 2 = = = H DS Q D= 730, S= $1 , H= $2 Page 573 Reorder Point (ROP): Uncertainty demand time lead of deviation standard The deviations standard of Number * time lead during demand Expected (ROP) Point Reorder = = + = dLT dLT z where z Safety Stock...
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- Winter '11