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How To Calculate Re-Order Point | ROP
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- čas přidán 1. 03. 2021
- Excel Templates: calonheindel.e...
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This video teaches how to easily calculate re-order point. Re-order point (ROP) lets you know when you should buy more inventory.
Its difficult to know exactly how much inventory you should have to minimize costs. ROP is a simple formula that will help you to know when to buy more inventory. That way you don't hold too much or run out when you're waiting for you next delivery of inventory.
ROP, EOQ, and Safety Stock help you to management inventory the best way to save the most money. Use these formulas to reduce costs!
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This video and the other you posted on safety stock has saved me from pulling my hair out over this class assignment! THANK YOU.
Love to hear that! Glad you found this video helpful!
Thx! Currently following a minor in supply chain management at college and working on an assignment where I needed to calculate this.
Glad this video could help!
subscribed & liked .
...sharing knowledge for free❤
Appreciate the support!
I want to ask you something important...
ROP means when you determine the stock level is undet rop you order EOQ... but if we have some orders will come and have productions that i will use the stock item... do we need to calculate the exact stock level like today stock+orders-production???
Hi,
I was curious to know what would happen if L d > Q? Q being order quantity and L d being (ROP).
thanks!
thank you!!
Nice thanks.
Hi, thanks for the video, can you explain a little bit more about service level, please? Who's service level is this? The vendor? If so, why if service level decrease, the ROP decrease? I think the more risk we have from the vendor, the more stock we should have before we plase a new order?
So the service level is dependent on your goals or benchmarks. It’s nearly impossible to reach 100% service level on a large scale. So generally a 95-98% service level is a great benchmark to reach. The service level simply defines the percent of the goal that’s achieved.
@@CalonHeindel oh ok, thank you
How to calculate leadtime in days in a given table of last 10 month
I am trying to find the formula. I am not very good at excel and you sped through it. Can you please help me write the equation?
The formula is: demand during lead time + safety stock
@@CalonHeindel I am not sure what I am doing wrong.
Pls tell me how fix material schedule qty ..for ordering..