A retailer uses a reorder point of 60 units.If its usage rate is 10 and its lead time is 5,what is its safety stock?

Name: A retailer uses a reorder point of 60 units.If its usage rate is 10 and its lead time is 5,what is its safety stock?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The reorder point is calculated as (Usage Rate x Lead Time) + Safety Stock. Here, the reorder point is 60, usage rate is 10, and lead time is 5. So, (10 x 5) + Safety Stock = 60. Therefore, Safety Stock = 60 - 50 = 10 units.

A Retailer Uses a Reorder Point of 60 Units