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.