Reorder point

ROP + safety stock + EOQ

Input

Reorder point

EOQ: 662 units/batch

180 units

Safety stock
75
EOQ
662
Orders/yr
8,3

ROP = daily sales × lead days + safety stock. EOQ = √(2×S×D/H) — optimal batch size balancing order cost and holding cost. Order when stock hits ROP — goods arrive before stockout.