The stock level at which you should reorder.
PP = d × L + SS
What each letter means
- d: Daily sales
- L: Lead time in days
- SS: Safety stock
An example
With d = 12 units, L = 5 days, SS = 20 units: Reorder point = 80 units.
The stock level at which you should reorder.
With d = 12 units, L = 5 days, SS = 20 units: Reorder point = 80 units.